Diamond industry focused
on important Hong Kong fair, hoping the recovery in Far East jewelry retail
will continue amid trade tensions and weaker currencies. Dealer trading slow,
with softer prices during summer slowdown as 1 ct. RAPI -0.5% in August. Rough
demand cautious, with lower premiums on secondary market. Gem Diamonds 1H
revenue +81% to $168M, profit of $24M vs. loss of $3M last year. Hong Kong 1H
polished imports +4% to $9.7B, exports flat at $6.7B. Equity firm Epiris buys
Bonhams auction house. Rapaport offices will be closed on Monday and Tuesday
(September 10-11) due to Rosh Hashanah. Best wishes to all for a happy,
healthy, prosperous and peaceful Jewish New Year.
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: Trading quiet in shorter week that began with Labor
Day.New York dealers expecting slow activity until after September
Jewish festivals. Fewer memo orders from retailers. Stable engagement-ring
demand for 1 ct., G-J, VS-SI diamonds. Major jewelers optimistic for
fourth-quarter holiday season, with marketing focus on fashion diamond
jewelry.
Belgium: Cautious sentiment due to slow trading, India
bankruptcy rumors, and decline of rupee, Chinese yuan and Turkish lira. Gap widening
between buyers’ offers and suppliers’ asking prices. Steady demand for 1 ct.,
D-J, SI2 goods. Very little inventory-buying. Rough dealer premiums soften
during De Beers sight.
Israel: Dealers focused on preparing inventory for next week’s
Hong Kong Jewellery & Gem Fair. Quiet expected in local market starting
next week, from Jewish New Year through Sukkot festival, which ends October 1.
Steady demand for 1 to 3 ct., D-G, VS-SI diamonds. Smaller goods sluggish, with
some price flexibility. Rough market slightly weaker.
India: Slow trading, with some dealers missing the Hong Kong
show due to next week’s Ganesh Chaturthi festival. Sentiment down following
rupee depreciation to record low (INR 72.10/$1), bankruptcy rumors and
tightened bank credit. Small manufacturers cautious and reducing polished
production. Drop in demand for small polished diamonds evident in rough market at
De Beers sight.
Hong Kong: Business improving ahead of next week’s show. Steady
demand for 0.30, 0.50 and 1 ct., D-G, VS-SI, RapSpec A3+ goods. Rising interest
in lower colors (G-K). Hong Kong jewelers more upbeat than those based in
mainland China as weaker yuan impacts consumer sentiment. Currency may also affect
tourist spending over October 1 Golden Week.
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