Low expectations for Sep. Hong Kong show due to slowdown
in Chinese demand and escalation of political protests. Trade war affecting
confidence. US jewelers likely to raise local manufacturing as 10% tariff on
diamond and jewelry imports from China takes effect Sep. 1. Weak Macy’s 2Q
results reflect struggling malls and drop in tourist spending. Devalued yuan
adds price pressure for Chinese diamond importers. Hong Kong 1H polished
imports -6% to $9.1B. Rough market quiet, with cutters reducing factory output
through Oct. 27 Diwali break. Sarine 2Q revenue -35% to $12M, net loss of $1.4M
vs. profit of $3.6M. India July polished exports -18% to $1.5B, rough imports
-34% to $1.1B.
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: Jewelry market slow, with decline
in buyers and exhibitors at New York JA show. High-end manufacturers seeing fewer
orders. Steady memo demand for 1.25 to 2.25 ct., G-H, SI-I1 goods. Melee
stable, but jewelers not buying for inventory. Dealers hoping reduced
production will create shortages that will support prices after Diwali.
Belgium: Antwerp diamond district very quiet
during vacation period. Bourses scheduled to reopen on August 19.
Israel: Very little activity during summer break
with diamond exchange closed until August 25.Dealers preparing for
upcoming Hong Kong show, but greater emphasis on supplying to US market ahead
of holiday season.
India: IIJS show sees slow diamond trading, but
steady gold inquiries ahead of festival and wedding season. Jewelers
waiting for gold-price stability before making orders. Polished production
reduced by estimated 30%, with cutters shifting to lower-cost goods to keep
workers. Large volume of 0.30 to 0.70 ct. available; suppliers selling
in parcels to save on grading costs. Steady demand for better-quality SIs
(RapSpec A3+), which are difficult to find.
Hong Kong: Trading and retail activity very quiet
as political protests intensify. Rising uncertainty about Sep. fair following
temporary airport closure, despite organizers’ assurances the show will go
ahead. Drop in tourist arrivals impacting luxury sales. Steady demand for 0.50
to 1 ct., J-M, SI goods. Weak demand for 2 ct.+, D-F, IF-VVS diamonds.
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