Polished
inventory levels starting to decline as manufacturers cut production and rough
buying. Small Aug. sight as De Beers lets sightholders reject 50% of goods.
Alrosa slashes 2019 sales forecast from 38M cts. to 33M cts. after 2Q revenue
-21% to $859M, profit -47% to $200M. Weak China demand and tight profit margins
still a concern. Buyers very selective during downturn. Strong jewelry sales at
Macy’s and J.C. Penney highlight discounting and promotional retail environment.
Belgian, Indian and Israeli trade bodies call to postpone Hong Kong show. Ian
Rowe replaces Dorothée Gizenga as executive director of Diamond Development
Initiative. Sean Kell appointed Blue Nile CEO.
Fancies: Fancy shapes soft,
reflecting slowdown in overall demand. 3 to 8 ct., I-K, VS-SI1 moving better
than rounds as dealers and consumers shift to lower price points. Well-known
brands are paying highest prices, as are buyers with specific requests. Ovals
for fashion jewelry moving well, especially 1.50 and 2 ct., G-H, VS and H-K,
SI2. Marquises and Princesses weak despite reduced manufacturing. US sustaining
market for commercial-quality, medium-priced fancies under 1 ct. Chinese
consumers seeking fancy shapes at better prices. Off-make, poorly cut fancies
illiquid and hard to sell, even at very deep discounts.
United States: Weak polished market
putting stress on suppliers. Steady demand for 1 to 2.75 ct., G-H, SI-I1 goods.
Large stones above 3 ct. slow. Dealers looking for unique items, such as
unusual fancy shapes, mirroring consumer requests for personalized pieces.
Jewelers assessing requirements for the holiday season.
Belgium: Dealers gradually returning
from vacation. Trading expected to remain subdued until the beginning of
September. Fewer fresh goods available, as manufacturing has declined. Rough market
slow during De Beers sight week.
Israel: Trading quiet with
the Israel Diamond Exchange closed until August 25. Dealers concerned about
upcoming Hong Kong show.
India: Slight improvement,
with more US and Israeli buyers looking for bargains in Mumbai. Demand has
narrowed to specific categories. Overseas jewelers not yet placing large
inventory orders. Stable demand for 1 ct., G-J, SI-I1 goods for US engagement
ring market. Weakening rupee and stricter customs controls weighing on
sentiment. Polished production reduced, with shift to lower-cost items.
Hong Kong: Wholesale and
retail sectors slow, although political unrest has calmed slightly. Luxury
sales down 4% to 11% due to demonstrations but could slide 10% to 60% if
disruptions continue to year-end, according to analysts at Cowen.
Low expectations for September show. Melee and parcel goods selling
better than single stones. Jewelers in mainland China pushing summer promotions
to boost turnover.
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