Advanced Search

Rapaport Weekly Market Comment

Oct 18, 2018 10:59 AM   By Rapaport News
Email Email Print Print Facebook Facebook Twitter Twitter Share Share
Melee weak and prices softening as rupee depreciation (-8% in three months to INR 73.53/$1 on Oct. 18) impacts Indian demand. Threat of undisclosed synthetics also influencing jewelers to avoid melee inventory. US orders and memo for 0.70 to 1.99 ct. diamonds supporting the market. Sears files for bankruptcy, highlighting need for retailers to innovate, improve in-store and online customer engagement, and refresh product offering for holiday season. Michael Hill 1Q sales -9% to $80M. Rough trading cautious, with De Beers prices estimated -1% at $475M Oct. sight. Rio Tinto 3Q production -17% to 4.9M cts. US government guarantees Stanbic Bank $125M loan for Botswana manufacturing.

Fancies: Far East demand improving as Chinese consumers seek fancy shapes at better prices. US and European demand mixed. Ovals and Cushions are best sellers, followed by Emeralds and Pears. Radiants improving. 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: Stable market as jewelers prepare for the holiday season. Prices for dossier goods firm, with dealers protecting profit margins after quiet third-quarter trading. Steady demand for 1 ct., G-J, SI-I1, GIA-graded diamonds. Smaller goods in uncertified parcels weak. A lot of items going out on memo.

Belgium: Polished market soft, but dealers optimistic for November and December. Consistent orders for 0.30 to 1.50 ct., G-H, VS-SI goods. Small stones slow. Improvement in high-end diamonds above 10 ct. Rough activity cautious, with De Beers boxes trading at lower premiums.

Israel: Sentiment weak due to low profitability and rising inventory levels. US orders stable, with high volume of commercial-quality goods on memo. Little excitement about Israel Diamond Week in New York (Oct. 15 to 17). Stable demand for 0.30 to 1 ct., F-J, VS-SI, RapSpec A3+ diamonds.

India: Drop in sentiment amid rupee depreciation and Surat bankruptcy rumors. Small-scale manufacturers under pressure as domestic demand for under-0.25 ct. goods declines. Steady US interest in SI-I1 diamonds. Fewer foreign dealers in the market than during last week’s Bharat Diamond Bourse buying event. Jewelers cautious ahead of Diwali festival as weak rupee inflates gold prices.

Hong Kong: Polished sector quiet and jewelry sales sluggish during shorter week that included the Chung Yeung Festival. Sentiment mixed, with some concerned about how US-China trade war and yuan depreciation could impact consumer demand and tourist spending. Encouraging initial reports about Oct. 1 Golden Week sales and ongoing wedding season. Tourist arrivals stable during busy holiday period.
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
Tags: Rapaport News
Similar Articles
© Copyright 1978-2019 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.