Dealers and jewelers optimistic for last-minute holiday sales. Multi-channel
digital and experiential retail are key themes this season, with rising number
of pop-up stores and webrooms. Trade shifting east, with improving Chinese New
Year demand. Some caution for 2019 as US-China trade war, volatile stock market
and higher interest rates could impact consumer sentiment. Prices of 0.30 ct.
diamonds pressured by high inventory (+160% vs. Dec. 2017 on RapNet). De Beers
raises 2018 production to 35M/36M cts., despite lower sales volume. Rough
prices stable during sight week. Alrosa Nov. sales -18% to $274M. Shane Durgin
replaces Patrick Evans as CEO of Dominion Diamond Mines.
Fancies: Fancy-shape market stable, driven by US and European
demand for fashion jewelry. Ovals and Cushions are best sellers, followed by
Emeralds 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: Steady trading, driven by last-minute holiday orders. Dealers
focused on short-term memo, with a lot of goods in retail stores. Melee market
stable with slightly better demand than last month, but prices well below
levels seen earlier in the year. Ovals remain strongest fancy shape. New York
retail busy, fueling optimism for rest of the holiday season.
Belgium: Positive mood
ahead of the Christmas break. Steady local demand, but orders are very specific
as jewelers avoid holding large inventory. Buyers demanding shorter delivery time
from suppliers. Fancy color diamonds slow, with top qualities holding value.
Rough trading quiet during De Beers sight week.
Israel: Suppliers
focused on filling US orders. Prices firm, supported by relatively low
availability of better-quality goods. 0.30 to 0.69 ct. remains slow, while
demand for 0.70 ct. and larger diamonds is stable. Concern about tightening profit margins for large stones.
Good season for dealers selling to consumers through online channels such as
Blue Nile and James Allen.
India: Cautious sentiment as trading slows ahead of the Christmas break.
Fewer foreign buyers in the market. Demand concentrated on SI-I1 goods. Rough market
restrained as manufacturers are holding large polished inventory, particularly lower-value
goods. Small diamond and jewelry
businesses under stress due to weaker rupee, tight credit and low profit
margins.
Hong Kong: Improvement in
both retail and wholesale markets driven by Christmas and Chinese New Year
demand. Steady interest in 1 ct., D-J, VS-SI, 3X goods. Improving sales of 2
ct., G-J, VS-I1. Parcels slower as jewelry manufacturers have enough stock for
the season. Tourist spending weaker as Chinese consumers shift focus to
mainland spending.
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