RAPAPORT...
Antwerp
Polished:
• Demand is strong for H-I, cleanish 1 carat, due to lack of polished.
• Generally speaking, shortages are being seen from smaller goods to 1 or 1.5 carats, from clean down to better SI goods.
Credit:
• Credit facility in polished goods has declined from 180 days to 120 days.
• Credit facility in rough also has decreased, from 60 days to close to 30.
China
• The retail market was busy during the three-day May Day holiday and the wholesale market continued to be steady. Imports through the SDE increased due to the Jewelry Shanghai 2009 trade show. Most in demand are rounds in 0.15- to 0.69-carat G+, VS and in 0.15- to 0.69-carat I-J, VVS.
• Demand remains stable for 0.3- to 1.10-carat round, D-H, VS, Gemological Institute of America (GIA)-certified diamonds, triple EX, double EX, or EX cut grade, with none to faint fluorescence. The shortage of triple EX diamonds continued and the asking prices are increasing, with continuing increases anticipated.
Hong Kong
• DIF in 1 carat and larger appears to have gained favor with consumers in recent months. Many see diamonds as a good investment now that prices have come down from the heights attained in 2008.
• 2- to 3-caraters in fancy cuts are also in demand. Pear shapes, especially in matched pairs, are in strong demand.
The preference is for D-F colors in VVS/VS clarity.
• Demand is stable for carat-size stones in high colors with VS/SI clarities and extremely strong for G-K colors in VVS.
• Dossiers from 50-pointers in G-K in VVS are also in strong demand.
• Small diamonds for settings continue to be slow, both in rounds and fancy cuts.
• Demand is increasing for fancy colors in high clarity of IF-VVS1 in large stones.
India
The sudden weakening of the U.S. dollar against the Indian rupee has slowed the movement of size goods in the local market because sellers are offering smaller discounts.
• Demand is good for stars, -2 and melee in SI+/J+ and slightly less for I1-I2/J+.
• Demand is good for 0.08 to 0.18 carats in SI1+/J+ and for 1/5 in VS+/H+ in the domestic market.
• Demand is average for 1/4 in SI1+/J+.
• Demand is good for 0.40 carats+ in VS+/I+.
• Demand is good for 1/2 in SI+/J+ and for 3/4 in VS+/J+. There are shortages in G-I color and severe shortages in 0.80 carats+.
• Demand is very good for 1 carat in SI2+/K+, with shortages in G-I color.
• There is some demand for 2 carats in VS+/I+.
• Overall demand for 3 carats+ is very slow.
• In fancy shapes, demand is good for marquise and pear below 1 carat in SI1+/J+ and for princess in 0.50 carats+, VS+/I+.
Israel
• Diamantaires are paying higher prices for rough because they expect polished prices to rise. Some shortages exist in certain polished goods categories.
• Strong demand exists for 0.5- to 1.5-carat, D-E and H-J, IF and VS1-SI1 stones.
• Demand for noncert, cheap goods of $500 to $1,500 per carat has improved.
• Demand for low colors is getting better.
• In fancies, demand is good for cushion and princess cuts in 0.70 to 1.50 carat,
I+, VS-SI.
• Demand for cheap, fancy yellow stones has improved.
Russia
• ALROSA, Russia’s largest diamond miner, expects its net profit for 2008 to total approximately $50 million, an unprecedented drop from the $500 million-plus reported in 2007.
• The miner has raised its production expectations for 2009 from $1.9 billion to $2.1 billion, based on 2009 first-quarter results.
• Demand in polished diamonds is strongest for 0.1 carat and 1 carat+.
• Jewelers expect continued stagnation over the summer, but hope demand will pick up in September.
• In anticipation of summer — a traditional time to get married in Russia — demand is strong for wedding rings costing less than $600.
U.S. Retail
• Round is the current top-selling shape, followed by princess.
• The most popular carat weight is 3/4 carat, though light carats, such as 0.80 and 0.90, are also selling well, as are 1-carat stones.
• SI1 is the top-selling clarity, followed by VS1.
• H is currently the preferred color, followed by G.
• Both 14- and 18-karat white gold outsell platinum in most markets.
• The average price for an engagement ring, including stone and setting, is $3,600, though in wealthier markets where platinum settings are preferred, that average is higher.
U.S. Wholesale
• 1- to 2-carat bread-and-butter goods are seeing some increased demand.
• VS1 to SI2 clarities are the best sellers.
• There is limited movement in VVS goods.
• The market for diamonds over 3 carats
is soft.
• Rounds are the most popular shape, with princesses and cushions in second place.
• Prices and demand for brown and black diamonds from 1 to 5 carats are holding up due to limited production.
Article from the Rapaport Magazine - June 2009. To subscribe click here.