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Rapaport Weekly Market Comment
Feb 9, 2017 11:00 AM
By Rapaport News
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Diamond
demand stable as reduced supply of polished and higher rough costs support
price levels. Over $1B of new higher-priced rough entered the market in January
without any increase in polished demand. Oversupply of expensive polished
expected. Chinese New Year good for gold, but gem-set jewelry sales stagnate.
Chow Tai Fook holiday sales +4% in China, -11% in Hong Kong & Macau. U.S.
retailers hoping to tap pent-up diamond jewelry demand over Valentine’s Day.
Indian jewelers starting to restock for ongoing wedding season after
demonetization froze orders. ALROSA Jan. sales +60% to $365M. Tiffany & Co.
CEO Frederic Cumenal resigns after disappointing Christmas.
Fancies: Fancy-shape demand improving slightly
with shortages of fine-quality, large Pears and Ovals. Cushions making
comeback. Emeralds selling better than Princesses. Some demand for big fancy
shapes, but buyers extremely picky. U.S. demand steady, Far East fancy shape
demand 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: Slight
improvement in NY trading. Dealers managing with lower inventory as retailers
start to replenish holiday stock. Steady demand for 1 ct., G-H, VS-SI, RapSpec A2,
(3X, none) diamonds. Pears and Ovals the strongest fancy shapes. Jewelers
discounting fashion jewelry to boost Valentine’s Day sales. Engagement and
bridal segment is steady.
Belgium:
Cautious trading
after quiet Antwerp fair. Buyers testing the market by offering deeper
discounts but no urgency to buy goods. Suppliers defending prices amid high
rough market prices. Steady demand for 1 ct., H-J, VS-SI, RapSpec A3+ diamonds.
Improving demand for 0.50 to 0.90 ct., G-H, VS (3X, none) goods. Rough trading
stable with reduced supply expected after very large January supplies.
Israel:
Polished trading
quieter than expected for this time of year. Hopes that high-profile foreign
delegations will raise trading levels at Israel International Diamond Week
(Feb. 13-16).Improving demand for top-quality flawless, type IIa
diamonds. Concern that luxury houses are limiting purchases of 0.30 to 0.50
ct., D-H, VVS-VS goods. Rough trading cautious as manufacturing margins
are tight.
India: Sentiment improving as impact of
demonetization begins to fade. Jewelry retailers starting to buy again after
two-month lull as wedding season demand improves. Gold jewelry performing
better than diamonds. Diamond buyers cautious with trading expected to rise for
Hong Kong show (Feb. 28). Manufacturing levels stable with smaller factories
still cautious amid limited liquidity.
Hong
Kong: Wholesale
market quiet as dealers slowly return from Chinese New Year vacation. Chinese
tourist arrivals steady during the festival but Hong Kong attracting
price-sensitive visitors from lower-tier cities. General retail stronger than
luxury, while gold demand boosts jewelry sales in mainland China. Stable demand
for 0.30 to 0.70 ct., F-H, VS-SI diamonds. Fancy color diamonds and gemstones
offering better margins than colorless diamonds.
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Tags:
Rapaport News
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