|
Rounds: TRADE CAUTION:
The recent surge of rough diamond prices on the secondary market is dangerous
and unsustainable. Current polished price levels reflect artificial shortages
created by 42% decline of rough supplies in 2H 2015. Production now normalizing
which will soon significantly increase polished supply while overall demand
remains weak. Chow Tai Fook Lunar New Year sales -29%. De Beers 2015 earnings
-72% to $258M, revenue -34% to $4.7B, rough sales -36% to $4.1B, 2H rough sales
-53% to $1.4B. ALROSA 2015 rough sales estimated -30% to $3.4B, 2H -26% to
$1.6B. Gitanjali 3Q sales -2% to $499M, profit -18% to $12M. Jean-Marc
Lieberherr appointed CEO of Diamond Producers Association.
Fancies: Pears and Ovals in short supply due to limited
production. Emeralds improving. Fairly good market for large top-quality
fine-cut fancy shapes but buyers are extremely picky and supply is very tight.
Cushions steady, Princess and Hearts slow. Overall fancy shape prices
relatively soft. U.S. demand supporting market for commercial-quality fancies,
especially for sizes under 1ct. Far East fancy demand weak. Buyers are very
selective and insisting on excellent-shape proportions. Significant price
differentials between excellent- and average-cut fancies. Off-make, poorly-cut
fancies illiquid and very hard to sell, even at very deep discounts.
United States: New York polished prices remain firm despite
slowdown in trading volume.Wholesalers are selling off old inventory
and trading is driven by orders for specific goods rather than inventory
purchases.Shortages of select goods due to lack of manufacturing in the
second half of 2015. Good demand for better-quality SI (3X, none) and
over-sizes. Consumer spending is cautious with retailers expressing concern
about the economy in an election year.
Belgium: Polished trading is quiet. Dealers are more
positive about the market than they were toward the end of last year even as
trading is slow. Dealers note a large amount of diamonds are out on
consignment, with the U.S. being the most active market for memo goods. Steady
demand for 1ct., G-H, VS-SI and for 0.30ct., G-H, VS-SI diamonds. Rough trading
is steady with good demand for reasonably priced De Beers goods ahead of next
week’s sight.
Israel: Mixed sentiment during International Diamond
Week (Feb. 14-18). Lots of offers but few deals as suppliers hold prices firm.
Difficult to find the right goods at the right price. Some Indian buyers
looking for bargain cash deals. Focus shifting to March Hong Kong show. Concerns
about possible insolvency and disappearance of Indian merchant operating in
Israel affecting Israeli suppliers who are owed $30-50M. Steady demand for
1-1.99ct., D-H, VS-SI diamonds with shortage of better-quality RapSpec A2
goods. Rough trading stable with small premiums for large expensive ALROSA goods.
India: Market
remains relatively slow with Chinese buyers still on vacation for Chinese New
Year. Trading expected to improve in the coming weeks as dealers prepare for
the Hong Kong show. Low expectations for Far East dealer demand. Steady U.S.
and Middle East demand, while Chinese buyers expected to return in the coming
weeks. Pockets of steady demand for 0.30-0.50ct. and 1-1.50ct., G-J, VS-SI
diamonds. Manufacturers increasing polished production but unsure of
end-demand. Rough trading steady with dealers reporting better value from De
Beers than ALROSA.
Hong Kong: Polished trading quiet as dealers slowly return
from Chinese New Year. Initial reports about the holiday season were weak as
tourist arrivals fell and political unrest weighed on sentiment. Chinese buyers
expected for the Hong Kong International Jewellery Show (March 1-7) but buying
levels remain uncertain as Chinese economy slows and stock markets devalue. Jewelry
manufacturers maintain cautious outlook for the year and have low expectations
for upcoming show.
See www.diamonds.net/Prices/RapaportSpecs.aspx for full explanation of Rapaport Diamond Specifications.
|