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Rapaport Weekly Market Comment
Dec 5, 2019 11:03 AM
By Rapaport News
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Jewelers and memo dealers gaining confidence after
positive start to holiday season. E-commerce driving growth, with record $9.4B
purchases on Cyber Monday, according to Adobe Analytics. NRF counts 189.6M
shoppers and average spend +16% to $362 over Thanksgiving weekend. Tiffany
& Co. 3Q sales flat at $1B, Signet Jewelers sales flat at $1.2B. Shortages
and holiday demand supporting diamond prices, especially for diamonds below 1
ct. RAPI for 0.30 ct. +5.3% in Nov., 1 ct. -0.5%. Rough market improving with
demand for RapSpec A3+ polished. De Beers returns to regular sales policy at
next week’s sight, ending flexibility that allowed higher buybacks or
deferrals.
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 weak 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: Positive reports about the holiday
season from wholesale and retail. Feedback fueling optimism among dealers for
sales of memo goods. Demand robust for commercial-quality engagement rings but
slow for high-end bridal. Estate and vintage jewelry hot. Diamantaires trying
to develop strategy for 2020 amid concern about long-term outlook.
Belgium: Market
improving as shortages lead to firmer prices. Less rough available after drop
in supply between July and November. Indian rough buyers looking for goods as
large-scale Surat factories raise production. Polished trading steady, with
dealers focused on filling US orders.
Israel: Momentum slower
than in previous weeks. 0.30 to 0.89 ct. diamonds remain firm, supported by
shortages as well as US and Chinese holiday orders. 1 ct. stable. Reduced
polished inventory fueling anticipation of increased rough supply in December.
Merger approval for Mizrahi-Tefahot Bank and Union Bank means smaller number of
local lenders, sparking concerns about tighter credit for the industry.
India: Buyers actively looking
for goods amid scarcity of better-quality RapSpec A3+ diamonds that are in
demand. Very little new supply available since manufacturers decreased
production over last five months. Rough orders expected to improve at next
week’s sight as cutters prepare for post-holiday restocking among jewelers.
Steady sales of I1-I3 stars and melee. Interest in certified stones centering
on goods below 1 ct. Local jewelry market falling short of expectations during
wedding season.
Hong Kong: Polished
trading doing better as political protests subside. Retail still quiet due to
weak consumer sentiment. Major jewelers seeing steady China sales compensate
for poor Hong Kong performance. Engagement-ring segment strong, but consumers
shifting to smaller center stones to meet lower price points. Improvement in
0.40 to 0.70 ct., D-I, VS-SI diamonds as well as 1 ct., I-J, SI-I1.
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Tags:
Rapaport News
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