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Hong Kong Offers Some Hope to Cautious Trade
Sep 19, 2016 4:05 AM
By Rapaport News
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RAPAPORT... The
Hong Kong Jewellery & Gem Fair concluded Monday, with diamond traders relatively
optimistic in the face of a cautious outlook for the upcoming holiday season.
Demand
in the Far East remains weak amid slower economic growth in Mainland China and
a fall in tourist arrivals in Hong Kong, according to most exhibitors.
“Hong
Kong is slow because tourism is down and the economy is cautious. In China,
things are growing at a slower pace,” said a Hong Kong-based jewelry wholesaler.
“People are more conservative in stocking goods.”
Traffic
at the finished jewelry section of the show was light on the opening day,
picking up over the weekend. Among loose diamond dealers, sentiment was relatively
positive as the show represented an opportunity to sell after a long period of
inactivity and a sluggish summer. Even as retailers and dealers are holding
less stock than before, people haven’t bought for so long that they now need
goods, exhibitors said.
The
slightly better mood came as market conditions improved from 2015, which was decidedly difficult amid a
slump in demand, according to Laurence Ma, president of the Diamond Federation
of Hong Kong, China.
“The
diamond market has stabilized this year,” Ma said. “Since the beginning of the
year, the price of polished diamonds has been steady. Demand and supply are
very much in balance. Inventory has been reduces at different levels. It’s a
lot healthier.”
Diamonds
are selling in specific categories, mostly in sizes 0.20 carats to 2 carats,
dealers said. Melee is weak because of lower demand and increased concern about
undisclosed synthetics entering the supply chain, while stones above 2 carats
remain hard to move.
“People
are not discounting polished,” said an India-based supplier. “It’s not about
prices – it’s about how I differentiate myself.”
Two
jewelry suppliers who spoke to Rapaport News said they were producing
pieces that retail at lower price points in response to tighter spending habits
in the Far East. For instance, the Hong Kong-based Brilliant Diamond Jewellery
Manufacturer Limited is making more products with smaller diamonds and lighter
gold weight to satisfy shifts in Far East demand.
“If
Hong Kong retail is down, it affects us directly,” said Jerrica Chua, a sales
manager at Brilliant, which supplies to China, the Middle East and Europe. The
quality is unchanged, with its diamond jewelry still containing SI, G-H goods
as the typical center stone, she added.
Show
participants observed increased concern among consumers and retailers about
lab-grown diamonds being mistaken for natural stones and stressed the
importance of differentiation and transparency. Show organizers UBM Asia launched a program
enabling exhibitors to display a certificate
verifying that diamonds in their booths are natural.
UBM Asia did not directly vet participants, Wolfram Diener, the company's senior vice president, told Rapaport News. Rather, recipients obtained
the certificate by virtue of being members of a natural diamond trade body,
including the Antwerp World Diamond Centre, the Israel Diamond Institute and the
Diamond Federation of Hong Kong, China.
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Tags:
Asia-World Expo, Brilliant Diamond Jewellery Manufacturer Limited, Diamond Federation of Hong Kong China, events, Hong Kong, Hong Kong Convention & Exhibition Centre, Hong Kong Jewellery & Gem Fair, Hong Kong show, Jerrica Chua, Rapaport News, shows, trade fairs
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