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Rapaport Weekly Market Comment
January 5, 2017
Jan 5, 2017 11:00 AM
By Rapaport News
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U.S. holiday sales mixed with
traditional retailers losing out to online. Diamond trading quiet with many
centers on vacation and India still feeling effects of demonetization. Thirty
pointers improve but larger sizes decline in 2016, RAPI for 0.30ct. +0.5%,
0.50ct. -1.4%, 1ct. -5%, 3ct. -8.5%. Chinese outlook optimistic. Hong Kong uncertain
with Nov. jewelry, watch and luxury sales -14% to $732M. Titan Company reports
positive 3Q with Tanishq Diwali sales +40%. Israel 2016 polished exports -6% to
$4.7 billion, rough imports +17% to $3.2B.
Fancies: Fancy-shape demand improving with shortages of fine-quality,
large Pears and Ovals. Cushions making strong comeback. Emeralds better than
Princesses. Some demand for big diamonds, but buyers extremely picky. U.S.
demand steady, Far East weak. Large 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: Holiday reports mixed with overall demand flat to slightly down. Last-minute
pickup in sales improved the verdict for season as a whole. Shortage in diamond
supply expected as trade looks to restock. Market confidence remains high with strong
stock market progress following Trump election.
Belgium: Diamond bourses closed for holidays, re-opening Jan. 9. Traders
report mixed holiday sales with U.S. and European demand okay but Far East
weak. European retail stocks slide in opening days of year as U.K. clothing
retailer Next predicts spending squeeze and warns on profit.
Israel: Sentiment improved in December following agreement with Tax
Authority but trading quiet as companies focus on adapting to new law.
India: Sentiment weak. Holiday sales to U.S. slower than usual with
estimates of small decline. Steady demand for 0.30-1.50 ct., VS1-SI2, RapSpec
A3 diamonds but D-F, IF weaker. Trade shifting focus to exports as
demonetization liquidity squeeze hurts domestic demand. Prospects for Chinese
New Year (Jan. 28) okay as traders make decent sales ahead of festival. Dealers
starting to look to Hong Kong show (Feb. 28-Mar. 6) with fairly high expectations.
Hong Kong: Market slow with many traders still on vacation. Retail sentiment
weak as November jewelry sales fall following decline in tourist arrivals. Local
currency pegged to strong U.S. dollar, making Hong Kong expensive for visitors.
Signs of possible improvement in December and better expectations for Chinese
New Year. |
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Tags:
Rapaport News
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