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Rapaport Weekly Market Comment
Dec 20, 2018 10:59 AM
By Rapaport News
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Positive sentiment in final sales-week before
Christmas. Fashion jewelry for self-empowered women driving growth. Polished
trading quiet as US and Belgium firms close for holidays. Dealers hoping strong
US shopping will stimulate wholesale demand in the first quarter. Chinese
jewelers preparing for Feb. 5 Lunar New Year. Indian manufacturers cautious, with
factories below capacity after India’s Nov. rough imports -52% to $929M. Rough
market quiet, despite relatively large $540M Dec. sight. De Beers 2018 rough
sales estimated +2% to $5.4B. Dominion recovers 553 ct. yellow diamond at
Diavik mine. Chow Tai Fook joins Tracr blockchain program. Rapaport wishes
everyone happy holidays.
Fancies: Fancy-shape
market stable, driven by US and European demand for fashion jewelry. Ovals and
Cushions are best sellers, followed by Emeralds and Pears. Supply shortage
supporting prices for 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. Chinese
consumers seeking fancy shapes at better prices. 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: Crunch time for
retail as jewelers hope for last-minute Christmas rush. Mixed results so far,
but overall sentiment positive. Consumers optimistic that 2019 tax cuts will raise
disposable income, but Fed interest-rate hikes may slow growth. Jewelers competing
with promotional discounting by mall-based department stores. Dealers waiting
for sales results from memo supply.
Belgium: Trading
starting to slow before bourses close for two weeks over Christmas and New
Year’s. Some last-minute holiday sales. Dealers focused on trading rather than
supplying European and US jewelers. Commercial goods moving, high-end D-F,
IF-VVS slow. Rough market quiet ahead of vacation period.
Israel: Sluggish polished
trading, with dealers waiting for US sales results to assess the season. A lot
of goods out on memo. Focus shifting to Chinese New Year. Steady demand for 1
ct., G-H, VS-SI, RapSpec A3+ diamonds. Large inventory of 0.30 ct. goods
available compared to same time last year. Less demand
for sizes up to 8-grainer rough.
India: Cautious
sentiment amid rumors of further bankruptcies and job cuts among manufacturers.
Polished production well below capacity, with some small- and medium-size
factories still closed since Diwali. Stable rough demand from sightholders at
last week’s De Beers sight. Shortage of better-quality SIs expected, as new
production will only be available in mid-first quarter. Steady consumer
interest during wedding season.
Hong Kong: Polished trading slow as Christmas approaches. Dealers shifting to
lower colors and clarities, with good demand for 1 ct., H-M, SI1-I1 diamonds. Deeper
discounts for VVS goods. Jewelers optimistic for sales during Chinese New Year
shopping season. Retail in mainland China improving as weaker yuan currency
influences consumers to spend in domestic market rather than abroad.
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Tags:
Rapaport News
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