Sentiment improved after relatively good holiday season, but
dealers and cutters concerned about low profit margins, excess supply, and
selective demand. Indian bank credit tightening, with ICICI to close Antwerp
branch. Stock markets rebound, with Dow index +2% since Jan. 1, amid optimism
for US-China trade deal. Suppliers focused on Chinese New Year orders, with
steady demand for lower-color and -clarity goods (G-J, VS-SI). Lab-grown
producers gaining investor interest. Diamond Foundry to raise annual
synthetic-rough production tenfold to 1M cts. Tiffany & Co. declares geographical
provenance of diamonds over 0.18 ct. De Beers approves changes to its
disclosure rules.
Fancies: Fancy-shape market stable, driven by US and European demand for
fashion jewelry. Ovals are best sellers, followed by Emeralds, Cushions and
Pears. Supply shortage supporting prices for Pears. Radiants improving.
Marquises and Princesses weak. Oversizes selling well. Steady demand for
fine-quality 6 to 10 ct. Ovals, Pears and Emeralds, with prices firming for 3
to 5 ct. due to shortages. Chinese consumers seeking fancy shapes at better
prices. US supporting market for commercial-quality, medium-priced fancies
under 1 ct. Off-make, poorly cut fancies illiquid and hard to sell, even at
very deep discounts.
United States: Dealers slowly returning from New
Year vacation; stronger trading expected from next week. Mixed feedback about holiday
selling season. Good demand and short supply of excellent-cut VS2-SI1 diamonds.
Jewelers note busy January, with a lot of repair work and gift-card purchases.
Steady sales of engagement rings ahead of Valentine’s Day.
Belgium: Sentiment positive as dealers return
from Christmas break.More confidence in European luxury market than
Indian dealer trading. Steady interest in 1 to 2 ct., G-J, VS-SI diamonds.
Dossiers weaker. Deep concern about credit scarcity and banks’ caution regarding
the diamond industry. Rough sector quiet.
Israel: Companies uncertain about prospects
for year ahead. Optimism for US demand, caution about China. Subdued local
trading amid unease about new tax laws, with some companies considering
relocating. Dealers bargain-hunting rather than focusing on niche specialties.Polished inventory levels stable compared to last year.
India: Slow trading, with few foreign purchasers
in the Mumbai market. Buyers selective, but having difficulty finding the right
goods at the right price. Suppliers maintaining stable prices on fresh supply,
but have a lot of older merchandise in stock. Manufacturers keeping production
below capacity for now, as concerns about profitability persist. Banks raising
collateral requirements, with liquidity crunch expected through the end of the
fiscal year on March 31.
Hong Kong: Polished trading steady as jewelers
prepare for Chinese New Year sales. Retailers reducing in-store inventory of
larger certified goods, preferring to contact suppliers as orders come in. Solid
market for 0.30 to 0.50 ct., G-J, VS1-SI2 diamonds. Good engagement-ring demand
for 1 ct., F-J, SI diamonds with no fluorescence. Dealers shifting to lower
colors and clarities to meet price points.
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