Diamond markets driven by last-minute Christmas orders and preparations
for Chinese New Year. US retail sentiment gets boost from economic growth,
pending tax cuts and record-high stock market (Dow at 24,666). Cost of credit
rising as Fed hikes interest rates 0.25 points based on positive job-market outlook.
Polished inventory reduced due to holiday demand and low availability of new
manufactured goods. Synthetics, tight bank credit and manufacturing profit
among biggest concerns for 2018. Rough market stable at $450M Dec. sight. De
Beers 2017 estimated rough sales -5% to $5.3B. Belgium Nov. polished exports
+11% to $971M, rough imports -13% to $986M.
Fancies: Curved fancy shapes in good demand. Ovals are
strongest category, followed by Pears and Cushions. Some squares — Emerald and
Radiant — are okay, but Princesses still weak. Oversizes selling well. Steady
demand for fine-quality 6 to 10 ct. Ovals, Pears and Emeralds, with limited supply.
US demand supporting market for commercial-quality, medium-priced fancies under
1 ct. Far East demand improving as consumers seek fancy shapes at better
prices. Off-make, poorly cut fancies illiquid and hard to sell, even at very
deep discounts.
United States: Positive sentiment as Christmas
approaches. Suppliers sending goods on short-term memo to stimulate
deals. Steady demand for 1 to 2.5 ct., G-I, VS-SI diamonds. Large volume of
lower-quality milky goods available at higher discounts. Good demand for
eye-clean SIs. Jewelers expecting better holiday season than last year.
Belgium: Trade slowing before the Christmas break. Dealers
offering higher discounts on lower-quality goods, as they don’t want to hold
inventory over the holiday period. Steady demand for 0.30 to 1 ct., F-H, VS-SI
diamonds. Rising interest in fancy color and fancy shape diamonds. Dealers
concerned about impact of online buying.
Israel: Stable market with steady orders from the US and Hong
Kong. Inter-dealer trading slowing. Improving demand for 1.01 to 1.08 ct., D,
IF and 1.01 to 1.08 ct., G, VS2 diamonds. Buyers looking for better-quality
polished, which is in short supply. Rough trading consistent, with slightly
better margins on the secondary market.
India: Positive sentiment despite sluggish polished
trading. Manufacturers maintaining low production until end of the year.
Improved melee demand in 4Q. Rough trading steady, with slightly better margins
on the dealer market, but manufacturing profit squeezed.
Hong Kong: Polished trading stable, with large retailers stocking
up for Chinese New Year (Feb. 16). Rising expectations for the season amid
improved consumer sentiment. Good demand for 1 ct., D-H, VS-SI, RapSpec A2+
diamonds. Dossiers steady. China better than Hong Kong, as Chinese consumers
and tourists shift focus to local spending.
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