Rising expectations for Hong Kong show (Feb.
26), with hope that Chinese buyers will resume bulk orders following 2018 slowdown.
Dealers uncertain about prices. Suppliers taking a lot of goods to the show. Top-make
RapSpec A2+ seeing steady demand and short supply. Rough market cautious ahead
of De Beers sight, as manufacturers are squeezed by high rough prices and
inflated polished inventory. De Beers 2018 revenue +4% to $6.1B, earnings -34%
to $349M, average price +6% to $171/ct. Petra Diamonds appoints Richard Duffy
as CEO, 1H revenue +8% to $207M, loss of $58M vs. loss of $118M the previous
year. India Jan. polished exports -16% to $1.7B, rough imports -40% to $858M.
Fancies: Fancy-shape market stable, driven by US and European demand for
fashion jewelry. Supply shortage supporting prices for Pears. Radiants
improving. Marquises and Princesses weak. Excellent-cut Ovals, Pears and
Emeralds doing well, with steady demand for fine-quality goods in 6 to 10 ct.,
and prices firming for 3 to 5 ct. due to shortages. Chinese consumers seeking
fancy shapes at better prices. US sustaining market for commercial-quality,
medium-priced fancies under 1 ct. Off-make, poorly cut fancies illiquid and
hard to sell, even at very deep discounts.
United States: Suppliers working directly with retailers
on program goods doing well. Dealers having tough time amid slow trading. Memo
houses busy, with short-term consignment goods selling more easily than
long-term. Steady demand for 1 ct., G-J, VS-SI, RapSpec A3+ diamonds. Mixed
reports about Valentine’s Day, with busy traffic at big brands and shift to
lower price points.
Belgium: Polished trading slow for this time of year. Steady demand for
0.50 to 1 ct., G-M, VS-SI, with shortage in lower colors. Focus on filling
specific requests from US and Europe, rather than bulk orders. Little
excitement for Hong Kong show. Rough dealers cautious due to tight liquidity
and reduced manufacturing.
Israel: Quiet market, with suppliers hoping Hong Kong show will stimulate
better activity. Many attending the show without exhibiting. Dealers struggling
to compete with India on price. Stable demand for 1 ct., G-J, VS-SI, RapSpec
A3+ goods; shortage of K-M colors. Large stones and nice-make fancy shapes
selling well.
India: Suppliers optimistic for Hong Kong show, with
signs of improvement in polished trading. Overseas buyers looking for top-make
VS-I1 goods, with shortages in select categories. Manufacturers maintaining lower
production, as inventory of low-quality polished remains high. Tight liquidity
due to reduced bank credit, squeezed profit margins and delayed payments from
some overseas clients. Local jewelry market slow.
Hong Kong: Wholesale trading improving, with some
pre-orders before the Hong Kong show, which begins Feb. 26. Dealers optimistic
for show as buyers have refrained from bulk orders for some time. Good demand
for 1 ct., F-K, SI-I1, VG+ diamonds. 0.30 to 0.70 ct., G-I, SI-I1 also selling
well. Jewelers more optimistic than before, with sentiment buoyed by strong
ecommerce growth.
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