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Rapaport Weekly Market Comment
Jan 3, 2019 10:59 AM
By Rapaport News
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Happy New Year! Diamond trade ends relatively good year with
1 ct. RAPI +0.7% despite weak 2H. Diamond manufacturers cautious amid
expectations of continued midstream consolidation due to bankruptcies and
mergers. Dealer market quiet over New Year holiday. Polished suppliers start
2019 with high inventory of small goods up to 0.30 ct. Total diamonds listed on
RapNet +24% year on year to 1.5M on Jan. 1. Positive US holiday season sees strong
store and web traffic. Retail outlook optimistic, boosted by tax reforms and
low unemployment, but stock-market volatility, higher interest rates and
US-China trade tariffs may slow luxury spending.
Fancies: Fancy-shape market stable, driven
by US and European demand for fashion jewelry. Ovals are best sellers, followed
by Emeralds, Cushions 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: Wholesale market quiet, with businesses slowly returning
from Christmas-New Year vacation. Initial holiday retail reports positive, but growth
slower than in 2017. Trading expected to increase in January following decline
in inventory levels during holiday season. Consumer confidence fell 7% in
December to its lowest level in five months, according to the Conference Board,
reflecting concern that economic growth would slow in the first half.
Belgium: Most businesses closed over New Year. Dealers assessing
first-quarter inventory needs before bourses reopen on January 7.
Israel: Trading sluggish as suppliers wait
for holiday-season results and replacement orders. Israeli dealer-to-dealer activity
continues to slow. Cautious outlook for the year amid consolidation and rumors
of layoffs. Businesses assessing new tax laws that took effect for the diamond
industry on January 1.
India: Polished trading down, with few foreign buyers in the market over
Christmas-New Year. Suppliers holding prices firm during lull, but willing to
discount on very old stock. Manufacturers raising polished production, but wary
due to high inventory levels. Consolidation expected this year as bankruptcy
rumors persist. Jewelry sales stable during ongoing wedding season.
Hong Kong: Market quiet, with many dealers on
vacation over Christmas and New Year. Preparations under way for Chinese Lunar
Festival on February 5. Jewelry manufacturing steady, with orders from the US
and China staying strong despite trade war. Tourist arrivals continue, but
focus turns to discount shopping rather than luxury.
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Tags:
Rapaport News
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