Market sentiment weak, with select categories
seeing demand. Diamonds between 0.70 ct. and 1.99 ct. moving well, but large
stones slow. Sluggish demand for goods under 0.50 ct., with manufacturers
reducing production of that size. Rough market subdued. Alrosa Jan.-Feb. sales
-40% to $627M. Belgium Feb. rough imports -28% to $621M, polished exports -3%
to $1.2B. Gem Diamonds 2018 revenue +25% to $267M, profit +171% to $47M after
record production of exceptional stones. Eurostar Diamond Traders close to
bankruptcy amid $500M debts. Signet appoints Jamie Singleton president of
merged Kay, Zales and Peoples leadership team.
Fancies: Fancy-shape market stable, driven by US and
European demand for fashion jewelry. Supply shortage supporting prices for
Pears. Radiants improving. Marquises and Princesses weak. Excellent-cut Ovals,
Cushions, Pears and Emeralds doing well, with steady orders for fine-quality
goods in 6 to 10 ct., and prices firming for 3 to 5 ct. due to shortages.
Chinese consumers seeking fancy shapes at better prices. US sustaining 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: Market weak, with falling interest in diamonds
under 0.50 ct. and above 3 ct. Buyers insisting on discounts due to excess
supply. Good orders for cushions and ovals. Growth in January retail sales
indicates improving consumer confidence.
Belgium: Sentiment low, with demand in select categories.
Round, 1 ct. goods selling well, but less movement in 2 to 2.99 ct. range, and
very weak market in 5 ct. stones and larger. Strong interest in pear, 1 to 2
ct., VVS diamonds. Inventories falling as manufacturing levels decline.
Israel: Polished production low due to weak market for
rounds 3 ct. and larger in high colors and clarities. Shortages of ovals and
pears supporting prices.
India: Sentiment cautious, with selective interest in
smaller sizes. Surplus of +11 goods has placed pressure on prices. Firms
trading rough rather than manufacturing, creating shortages in certain melee
categories. Slow demand for diamonds under 0.50 carats, but better sales of
round, 1 ct. stones. Dealers seeing stronger orders from US than China, with
certified goods easier to sell than uncertified. Liquidity low for manufacturers
and traders as Mar. 31 financial year-end approaches.
Hong Kong: Activity dropping slightly as positive effects of
Hong Kong show wear off and peak retail season ends. Demand remains for 1 ct.,
G-I, VVS2-SI2 diamonds, with shortages of stones containing no black
inclusions. Dossiers not selling well, especially in 0.50 to 0.99 ct. range.
Weak overall demand for 2 ct. diamonds, but dealers still getting orders for
certain triple-Ex goods with high colors and medium clarities. Fancy-yellow
sales stable in China.
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