RAPAPORT... The 7th Shenzhen International Jewellery Fair, held September 14 to 18, attracted more than 800 exhibitors from 20 countries. With its big exhibition area of approximately 560,000 square feet, which was nicely designed and decorated, the fair indicated optimistic prospects for the rest of 2006, although there were fewer professional visitors and buyers than expected by some of the diamond exhibitors.
The fair has become the most influential jewelry show in the country and an important annual gathering for the jewelry trade. One reason is because Shenzhen is such a dynamic jewelry manufacturing area, with approximately 1,500 gold jewelry manufacturing and trading enterprises with a worker force of 110,000 employees and total annual sales of 43 billion yuan — $5.4 billion — domestically and $1 billion in exports.
Diamond Exhibitors at the FairThe Diamond Trading Company (DTC) not only organized a pavilion at the fair for 23 exhibiting sightholders, but also arranged a get-together for them to meet 24 major Chinese jewelry retailers, which was regarded as very helpful for the sightholders.
In addition to the DTC sightholder exhibitors, there were approximately 100 diamond companies exhibiting at the fair. Many diamond exhibitors said that they had better results than during the same period of 2005, but sales in September slowed a little bit compared with August. A diamantaire explained that, driven by the need to prepare for the October “Golden Week” holiday sales, and also because of the value-added tax (VAT) rate adjustment, imports of diamonds soared in August, and both jewelry manufacturers and retailers currently have sufficient stock.
Palladium Alliance International Debuts at the FairThe newly formed Palladium Alliance International (PAI) held a forum entitled “Palladium, the Expectation of Two Centuries” at the fair to launch its marketing campaign in China, which is the biggest platinum jewelry consumer in the world. Three series of new palladium jewelry designs were unveiled at the fair and will be marketed through designated jewelry shops in the first-tier cities in China.
Palladium jewelry first appeared in the China market about three years ago. It is reported that the country’s palladium jewelry consumption grew by 70 percent in 2005 and has now reached levels in excess of 80,000 pounds. The country accounts for 85 percent of the world’s total palladium jewelry consumption, according to Johnson Matthey’s Platinum 2005 Interim Review.
With precious metals prices spiking through the roof, palladium has been a hot topic among the local jewelers. Chen Jiu, managing director of Lao Miao, a major jeweler in Shanghai, said that about one-third of the company’s 95 franchised shops now sell palladium jewelry.
Since the 1990s, the growth of the fashion industry and rising demand for diamond-set jewelry have increased awareness of and demand for platinum. White metal bridal rings have become popular among young people in China. The demand for platinum rose steadily because gold trading was restricted and controlled by the Central Bank of China. This gold restriction has been loosened recently because of the government’s commitment to the World Trade Organization (WTO), but the taste for clean-looking white metals already is widely developed in the market. According to a survey, 84 percent of brides choose white wedding rings.
Trade experts predict that the position of palladium jewelry will be significantly different a few years from now than it is today, and the same evolutionary process that platinum went through 15 years ago will take place in the palladium jewelry market in China. Palladium is being successfully promoted in the Chinese market as a member of the platinum metal group and as a peer of platinum in terms of quality, rather than as merely a cheaper alternative to platinum.
New Chairman for Diamond Manufacturers AssociationAt the China Diamond Manufacturers Association meeting on September 6, association members elected Sandro Sze of Helix Diamond & Jewelry Co., Ltd. as its new chairman, along with three new vice chairmen: David Pong of Wing Ziao Diamond Cutting Works, Qiao Ming of Qingdao Jinghua Diamond & Jewellery Co., Ltd. and Paul Wong of Hang Fai Diamond Co., Ltd.
The Marketplace• Best moving items are:
10-per-carat: good make, VS1+/H-I, are selling at approximately $650 to $680.
6-per-carat: good make, VS2+/H-I, are selling at approximately $840 to $880.
• The market also accepts:
10-per-carat: good make, VS1+/I-J, are selling at approximately $600 to $630.
6-per-carat: good make, VS2+/I-J, are selling at approximately $780 to $830.
• 1/10 to 1/6, TTLB/SI are also moving.
• Supply of 1-carat goods has increased recently.
Article from the Rapaport Magazine - October 2006. To subscribe click here.