TRADE ALERT: New
US Federal Trade Commission guidelines still require full disclosure for
lab-grown diamonds. While the FTC expanded the definition of the word “diamond”
to include synthetics, it continues to restrict the use of the word “diamonds”
to natural diamonds unless it is immediately preceded by a phrase that clearly
discloses the product is not a mined diamond. News: Trading centers
quiet, with Antwerp and Israel shutting for summer vacation. Polished prices
soften in seasonal slowdown, with 1 ct. RAPI -0.4% in July. Rough premiums cool
to 4% after $530M De Beers sight. Rio Tinto 1H diamond sales -5% to $323M.
Swatch Group pulls out of Baselworld 2019.
Fancies: Far East demand improving as Chinese consumers seek Pears and
Princesses at better prices. US and European demand mixed. Ovals and Cushions
are best sellers, followed by Emeralds and Pears. Marquises and Princesses
weak. Oversizes selling well. Steady demand for fine-quality 6 to 10 ct. Ovals,
Pears and Emeralds, with prices firming for 3 to 5 ct. due to shortages. US
supporting market for commercial-quality, medium-priced fancies under 1 ct.
Off-make, poorly cut fancies illiquid and hard to sell, even at very deep
discounts.
United States:
Slow polished trading. New York JA and Antique shows didn’t attract much
attention. Inventory levels rising, with dealers hoping for strong improvement
during fourth-quarter holiday season. Stable demand for dossiers. Upward trend in
cushion brilliants, as jewelers focus on bridal during summer wedding
season.
Belgium:
Very little activity, with most diamantaires on summer vacation. Bourses closed
from July 30 to August 20. Some Antwerp-based Indian dealers in Mumbai looking
for goods.
Israel:
Trading seasonally quiet as dealers prepare for summer break. Bourse to close
from August 5 to 17. Steady orders for 1 ct., F-H, VS1-SI1, RapSpec A2+
diamonds, with prices firming. Rising inventory of 0.30 to 0.49 ct., D-F,
IF-SI2s. Concern about synthetics fraud after bourse member suspended for
diamond swapping.
India:
Some improvement as other trading centers take vacation. Buyers from China,
Belgium, Israel and US in Mumbai looking for goods. Low expectations for next
week’s IIJS show (August 9 to 13), amid stagnant domestic demand due to weaker
rupee. Manufacturing margins squeezed after rough prices rise 4% in first half,
while polished softened during July quiet. Rough trading slows after De Beers
sight.
Hong Kong:
Stable market. Dossiers selling better than 1 ct. and larger, reflecting sales
in retail sector. 0.30 to 0.50 ct. are strongest sizes. Buyers shifting to
lower J-M colors. Buyers cautious due to yuan depreciation, waiting for
September Hong Kong show to assess prices. Retail sentiment positive after
strong first-half growth, but some concern about impact of US-China trade
tensions.
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