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Rapaport Weekly Market Comment
Jan 19, 2017 11:00 AM
By Rapaport News
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Sentiment
improving as jewelers begin stock replenishment after mediocre holiday season.
Independents outperform majors and online takes significant market share from
physical stores. China waking up for ‘Year of the Rooster’ with rising
expectations for Jan. 28 Golden Week. China doing much better than Hong
Kong. Luk Fook 3Q same-store sales -10% with China +5%, Hong Kong -11%. Rough
trading steady with continued weakness in lower-quality goods due to India demonetization
problems. Price-sensitive buyers moving to HPHT synthetics instead of
lower-quality natural diamonds. India Dec. polished exports +23% to $1.2B,
rough imports -5% to $1.5B. Richline buys The Aaron Group.
Fancies: Fancy-shape
demand improving slightly with shortages of fine-quality, large Pears and
Ovals. Cushions making comeback. Emeralds selling better than Princesses. Some
demand for big fancy shapes, but buyers extremely picky. U.S. demand steady,
Far East weak. Large price differentials between excellent- and average-cut
fancies. Off-make, poorly cut fancies illiquid and very hard to sell, even at
very deep discounts.
United States: Polished
trading improving after quiet holiday period. New York dealers preparing for
India Diamond Week in DDC (Jan. 23 to 26). Steady demand for 1 ct., G-H,
VS2-SI2, RapSpec A3+ diamonds. Retailers restocking ahead of Valentine’s Day
but diamond demand remains selective and price sensitive. Jewelers assessing
how to compete with online growth.
Belgium: Steady
activity with dealers gaining confidence for 2017. U.S. demand stable, Europe
weak. Stable demand for 1 ct., G-J, VS-SI, RapSpec A3+ diamonds. 0.30 ct. to
0.40 ct. improving. Fancy color diamonds firm. Selective demand for fancy
shapes with shortage of top-quality goods. Rough trading stable during De Beers
sight week with concerns about low profit margins.
Israel: Trading quiet.
Dealers still assessing holiday season as memo goods are slowly returned.
Buyers shifting to lower price points with steady U.S. demand for J-K, SI-I1 goods.
Shortage of top-quality diamonds for high-end. Dealers moving online with
positive results on James Allen and Blue Nile (B2C) platforms. Rough trading
stable during De Beers sight.
India: Trading
improving with foreign buyers looking for bargains in Mumbai. Shortages in
select categories as fresh post-Diwali supply still in production. Rough demand
steady as export-focused factories raise production levels. Smaller
manufacturers cautious due to liquidity squeeze.
Hong Kong: Dealer market
quiet as wholesalers close for the Chinese New Year. Some last-minute orders
with steady holiday demand for 0.30 to 1 ct. E-J, VVS-SI RapSpec A2+ diamonds.
Good demand for better-quality fancy color diamonds and high-end gemstones.
Rising holiday expectations in mainland China as major jewelers report growth
compared to last year’s lows. Hong Kong remains weak with government relaxing
visa requirements to boost tourist traffic. |
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Tags:
Rapaport News
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