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Rapaport Weekly Market Comment
Jun 20, 2019 10:58 AM
By Rapaport News
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Sentiment weak as polished prices continue to
soften. Hong Kong fair opens with hope for better trading than Las Vegas shows.
Outlook for Chinese local demand improves as luxury consumers shift to domestic
spending, since weak yuan and trade war have reduced tourist shopping. Jewelers
avoiding inventory buildup. Rough market cautious despite reported 4% to
8% price cut on small rough during low-value De Beers sight. Manufacturers
reducing operations due to sluggish demand and tight profit margins. Christie’s
Maharajas & Mughal Magnificence sale nets $109M (93% by lot) with Cartier
diamond brooch selling for $10.6M. French billionaire Patrick Drahi acquires
Sotheby’s for $3.7B.
Fancies: Fancy shapes soft, reflecting slowdown in high-end 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 the strongest prices, as
are buyers with specific requests. Ovals for fashion jewelry moving well,
especially VS2-SI2. Demand for Radiants and Emeralds down. 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: Slow trading ahead of July break. Retail
performing better than last year, but dealer market weak. Jewelers limiting
purchases and taking more goods on memo. Stable demand for 1 to 1.25 ct., G-J,
VS-SI diamonds. Bridal steady during summer wedding season, but there is concern
that average spend on engagement rings is declining.
Belgium: Sluggish rough and polished trading.
Dealers who shunned Las Vegas are traveling to Hong Kong Jewellery & Gem
Fair (June 20 to 23), where they see greater buyer potential. Top-make SIs
doing well, but suppliers stuck with a lot of lower-quality goods. Large stones
slow. Rough market soft during De Beers sight.
Israel: Cautious mood in the bourse. Several
dealers attending Hong Kong show after Las Vegas failed to boost trading
activity. Small goods below 0.60 ct. weak. Steady demand for SI-I1 diamonds.
Large-stone market subdued in both rough and polished.
India: Polished trading relatively quiet for
this time of the year. Some companies reducing prices to boost activity and
liquidity. Manufacturers cutting their rough intake, as they’re maintaining low
factory production levels. Few overseas buyers in Mumbai as focus shifts to
Hong Kong for the show. Locals looking for 1 ct. and larger stones, as small
sizes remain weak.
Hong Kong: Dealers concentrating on this week’s
show. There is concern some buyers have canceled due to ongoing protests in
the city, which have also affected sentiment in the luxury sector. Major
retailers are reducing inventory and have avoided large purchases in recent
months. Steady demand for 0.30 to 0.50 ct. and 1 ct., F-I, VS-SI, RapSpec A3+
goods. Colored-diamond dealers more optimistic than others.
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Tags:
Rapaport News
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