Hong Kong show brings fewer
visitors, but better-than-expected trading. Serious buyers attending. Fair reflects
specific Chinese interest and shift to lower-color diamonds. Pockets of good
demand, with shortages of nice (eye-clean) RapSpec A3+ SIs due to reduced
manufacturing. Some small-scale Indian cutters closing early for Diwali. De
Beers maintaining flexibility for next week’s sight, allowing 20% buybacks or
50% rejections. Petra Diamonds FY revenue -6% to $464M, loss of $258M vs. $203M
loss in previous year. Focus shifting back to US ahead of 4Q season, with call
for major marketing campaign to raise consumer demand. US specialist jewelers’
1H sales -5% to $14.4B.
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: Dealers looking for buying opportunities, but remain
selective and price-sensitive. Retailers have yet to make significant orders
for the holiday season and are concentrating on memo goods for now. Steady
retail demand for 1 ct., G-J, VS2-I1 goods. Large stones above 3 ct. weak.
Belgium: Quiet trading, with dealers focused on the Hong Kong
show. Buyers looking for deals, as they perceive suppliers are under pressure
to raise liquidity. Stable market for 0.30 to 1 ct., G-H SIs. Emphasis on 3X,
nonfluorescent goods (RapSpec A3+). Rough market slightly more optimistic ahead
of next week’s De Beers sight than it was a month ago.
Israel: Slow activity in the bourse, since many are in Hong
Kong and because it was a short week due to national elections. Shortages
developing and prices firming for 0.50 to 1 ct., F-I, VS2-SI2 (3X,
nonfluorescent) diamonds. Lesser qualities difficult to move. Shift to lower
price points as jewelers compensate for higher gold price.
India:
Fewer goods and buyers in the local market during the Hong Kong show. Dealers
looking to fill specific orders, with very little inventory-buying. Volatile
melee market seeing slight improvement in lower price ranges. Polished
production still at reduced levels, with some small-scale manufacturers closing
early for Diwali. Larger exporters preparing inventory as they anticipate US
holiday orders.
Hong
Kong: Trade focused on the show, which ends Sunday
(September 22). Visitor traffic down from previous years due to demonstrations
in the city. Subdued activity affecting smaller exhibitors more than large
suppliers. Steady Chinese demand for 1 ct., F-K, VS-SI (RapSpec A3+) goods,
with move toward lower colors. Muted expectations for retail sales during
upcoming National Day (October 1), given the ongoing protests.
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