Diamond market weak due to
summer slowdown and sluggish dealer demand. Manufacturers frustrated by tight
profit margins and hoping for rough price reduction at De Beers July sight. Cutters
maintaining low polished production due to profit and liquidity squeeze. ABN Amro
restricts rough-sector lending out of concern for lack of profitability. Chow
Tai Fook FY1Q same-store sales +11% in China, -11% in Hong Kong as political
protests and strong dollar impact tourist luxury spending. De Beers 1H production
-11% to 15.6M cts., sales volume -12% to 16.5M cts., average price -7% to
$151/ct. Belgium June polished exports -20% to $836M, rough imports -21% to
$681M.
Fancies: Fancy shapes soft, reflecting slowdown in high-end
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 best
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: Polished trading slow, with manufacturers
cutting out dealers by selling directly to retailers. Suppliers considering
lower offers to maintain cash flow and inventory turnover. Steady demand for
RapSpec A3+, 1 to 2 ct., G-H SIs. Overall retail positive in June, despite
reported decline in consumer confidence. Jewelry store sales -3% to $2.74
billion for the month, according to government data.
Belgium: Focus on rough ahead of next week’s
sight, as July is traditionally a strong month for De Beers and Alrosa sales. Low activity ahead of summer vacations, which are scheduled for the beginning
of August. Weak sentiment stemming from declines in other centers. US orders
supporting the market. 0.30 to 0.60 ct., G-M, SI2 goods selling well.
Israel: Quiet trading, with rising concerns
about drop in sentiment. Manufacturers note tight profitability ahead of De
Beers sight. Stable US demand, with steady orders for 1 ct., G-H, VS-SI,
RapSpec A3+ diamonds. 0.30 to 0.50 ct. and large stones above 3 ct. soft.Bourse delegation in Shanghai targeting
improved business with Chinese traders.
India: Fewer transactions than this time
last year, despite strong foreign-dealer presence in Mumbai. Buyers looking for
bargains amid rumors of tight liquidity and financial distress. 0.30 ct.
diamonds selling in parcels since prices of certified goods have declined. GIA
has reduced grading fees for 0.30 by 10%. Solid demand for SI1-I2 parcels.
Manufacturers maintaining low polished production.
Hong
Kong: Wholesale and
retail markets very slow due to ongoing political protests. Trade war making
dealers cautious, even as jewelry retail sales in mainland China remain robust.
Buyers moving away from 0.30 ct. Dealers reluctant to purchase in down-trending
market. Some opting for 0.50 ct. instead. Soft trading expected at least until
September show.
|
|
|
|
|