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Rapaport Weekly Market Comment
Dec 12, 2019 11:03 AM
By Rapaport News
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Polished trading driven by last-minute US holiday orders
and preparations for Chinese New Year. Multi-channel marketing and
personalization are key themes for retail this season. Consumers shifting to
lower price points. Diamantaires satisfied with Dec. orders after tough year. Dealers
hoping reduced rough supply will support prices and relieve inflated polished
inventory. De Beers cuts production plan to 32M-34M cts. as Anglo American
reports 2019 inventory grew by $500M. Bain forecasts recovery only in 2021. ABN
Amro tightens credit conditions, citing reduced midstream requirements due to streamlined
production and sales efficiency.
Fancies: Some improvement in 1 ct. and larger,
G-H, VS-SI fancy shapes. Excellent-cut pears and ovals selling well as more
affordable alternatives to rounds. High-end qualities soft as dealers and
consumers shift to lower price points. Ovals for fashion jewelry moving well in
1.50 and 2.99 ct., G-H, VS and H-K, SI2. Large Emeralds steady. Marquises and
Princesses weak despite reduced manufacturing. US sustaining market for
commercial-quality, medium-priced fancies under 1 ct. Chinese consumers seeking
fancy shapes since prices are lower than rounds. Off-make, poorly cut fancies
illiquid and hard to sell even at very deep discounts.
United States: New York trading stable as dealers take
last-minute holiday orders and await feedback on consignment sales. Activity down
slightly from November as the Christmas break approaches. Recycled market busy
as pawn shops see strong interest from buyers and resellers. Steady memo demand
from retailers for rounds and ovals in 1 to 2 ct., G-H, VS-SI categories. Major
brands trying to woo customers with pop-up stores and community events.
Belgium: Market slowing before the Christmas break,
but mood positive after Nov./Dec. improvements. Holiday orders selective as
jewelers avoid holding large inventory over the festive period. Buyers insisting
on shorter delivery time from suppliers and taking more goods on memo. Solid US interest in 1.50 ct., G-H, VS2-SI2 diamonds, while
0.30 to 0.70 ct. continues to improve. Rough trading slightly more active
during De Beers sight week.
Israel: Bourse relatively quiet for this
time of year. Suppliers focused on filling US holiday orders and planning for
2020. Far East demand down. Buyers looking for goods in India but are very
selective and finding it difficult to fulfill their requirements due to
shortages. Rough dealers concentrating on commercial qualities. 4- to 8-grainer
rough weak despite firm market for 0.30 to 0.70 ct. polished.
India: Sluggish polished trading, with buyers
struggling to find the right goods due to scarcity of popular categories.
Manufacturers cautiously raising production levels. Factories still operating
below capacity with large inventories of lower-quality diamonds that are
difficult to sell at a profit. 0.30 to 0.70 ct., G-J, SI-I1 moving well. Stars
and melee stable in SI and lower piqué clarities. Jewelry retail sales
relatively slow given the ongoing wedding season.
Hong Kong: Sentiment improving as business returns
to normal following months of demonstrations. Chinese buyers coming back to the
city in search of goods for the Chinese New Year on January 25. Steady demand
for 0.50 to 0.70 ct., D-I, VS-SI, RapSpec A3+ diamonds. Shift to lower colors
in 1 ct. category. Hong Kong retail still depressed, but mainland China jewelers
seeing solid consumer interest.
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Tags:
Rapaport News
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