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Rapaport Weekly Market Comment
Jun 6, 2019 10:58 AM
By Rapaport News
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Slow trading at JCK show
highlights middle-market liquidity and profitability challenges. Prices softening
with 1 ct. RAPI -0.7% in May. Suppliers using technology and sourcing programs
to demonstrate added value as jewelers reduce inventory purchases. US jewelry
market steady with top independents gaining market share over majors by providing
personalized service to millennials. Luxury jewelers exposed to trade war as
Chinese tourists cut overseas spending. Tiffany 1Q sales -3% to $1B, profit
-12% to $125M. Signet 1Q sales -3% to $1.4B, loss of $10M vs. loss of $497M the
previous year. Swarovski plans move into natural diamonds. RapNet members vote no
to lab-grown listings and price list.
Fancies: Fancy shapes soft, reflecting slowdown in
high-end demand. Inventory limited. Well-known brands and buyers with specific
requests are paying the strongest prices. Dealers being squeezed by lack of
goods and low profit margins. Ovals for fashion jewelry moving well, especially
VS2-SI2. Pears with VS clarity also steady. Demand for Radiants and Emeralds
declined. 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: Positive sentiment among
jewelers at Las Vegas shows, but slow fair for suppliers. Retailers planning fall
and holiday collections, limiting loose-diamond buying to specific items. Steady demand for 0.60 to 1.99 ct., G-J, VS2-I1 goods. VVS
weak. Bridal sales stable, but market shifting to lower-price categories.
Belgium: Fewer dealers attended
Las Vegas fairs. Buyers are price-sensitive and
avoiding inventory buildup. Polished and rough trade well below last year’s
levels with exports to all major markets and trading centers down. Good
demand for 1 ct. G-J, VS-SI, RapSpec A3+ diamonds. Rough
market cautious ahead of next week’s Alrosa sale (June 13 to 19).
Israel: Sentiment mixed
following the JCK show. Weak demand for stones below 0.50 ct. and above 3 ct.
Commercial-quality 1 ct., G-J, VS-SI stable and supporting the market. Some
dealers traveling to Hong Kong June show to assess impact of trade war on Far
East demand. Rough trading slow as manufacturers prefer to buy polished than
rough.
India: Trading in Mumbai relatively slow as May summer break ends and dealers return
from Las Vegas. Inventory levels declined slightly in past month after
manufacturers reduced polished production. Rough market cautious amid tight
profitability. Good demand for lower-color (J-K) diamonds. Local jewelry market
stable.
Hong Kong: Diamond trading quiet, with dealers waiting for
market indicators from Las Vegas shows. Suppliers preparing for Hong Kong fair
(June 20 to 23), hoping to unlock pent-up Far East demand. Consumer sentiment
sluggish amid heightened US-China trade tensions. Strong dollar and China-first
policy pushing Chinese tourists to spend more at home. Gold sales stable
as consumers seek investment value in jewelry.
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Tags:
Rapaport News
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