Slow start to Hong Kong show, but optimistic Far
East buyers are restocking inventory after Chinese New Year. Dealers hoping show
will stimulate better trading after sluggish Jan./Feb. Rough market cautious as
profit margins remain tight despite rough-price reductions at De Beers sight. Swiss lab SSEF launches GemTrack, linking polished to
rough colored stones. Michael Hill 1H sales -3% to $226M, profit +124% to $14M.
Sarine 4Q sales -6% to $12M, profit -85% to $93,000. Rio Tinto diamond revenue
-2% to $695M, profit +28% to $118M. Lucara 2018 revenue -20% to $176M, profit
-82% to $12M. De Beers appoints Nompumelelo Zikalala
CEO of merged South Africa and Canada mining divisions.
Fancies: Fancy-shape market stable,
driven by US and European demand for fashion jewelry. Supply shortage
supporting prices for Pears. Radiants improving. Marquises and Princesses weak.
Excellent-cut Ovals, Pears and Emeralds doing well, with steady demand for
fine-quality goods in 6 to 10 ct., and prices firming for 3 to 5 ct. due to
shortages. Chinese consumers seeking fancy shapes at better prices. US
sustaining 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: New York trading stable
with many suppliers at Hong Kong show. Shortage of fine-quality (3X,
no-fluorescence) SI goods. Excess supply of lower-quality stones. Steady
interest in 1 ct., G-J, VS2-I1 diamonds. Retail market seasonally slow with focus
on bridal ahead of summer wedding season. Jewelers seeing rising demand
for lab-grown diamonds.
Belgium: Polished market slowly
improving. Dealers expecting large-stone demand at Hong Kong show. Fancy shapes
slow. 1 ct., G-J, VS-SI diamonds selling well, but buyers insisting on top makes.
Goods with faint fluorescence sell at significantly lower prices. Slightly
better premiums on rough secondary market.
Israel: Local trading quiet. Large delegation of
dealers and suppliers traveled to Hong Kong fair. High hopes the show will
stimulate stronger activity in Ramat Gan bourse. Suppliers holding prices firm
for 0.70 to 1.49 ct., G-J, VS-SI, RapSpec A2+ diamonds (3X, no fluorescence).
Good demand at large-stone rough auctions.
India: Sentiment weak as many dealers traveled to the Hong Kong show. Suppliers
holding large volume of goods that are difficult to move. Steady demand for 1
ct., G-J, VS-I1 diamonds. 2 ct.+ slow. Manufacturers remain cautious as profit margins continue to be squeezed
and polished production remains relatively low.
Hong Kong: Positive sentiment among local traders, with
many foreign dealers and buyers in town for the show. Big local brands looking
for goods. Jewelers still assessing Chinese New Year sales and are expected to
restock in coming months. Steady demand for 0.30 to 1 ct., D-J, VS-SI (3X,
no-fluorescence) stones. Fancy-color diamonds also selling well.
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