Diamond trade cautious after slow Hong Kong
show. Demand selective and inventory levels high, with buyers insisting on deep
discounts for goods under 0.50 ct. Low manufacturing profits reducing Indian
polished production as smaller goods not making money. 0.30ct. RAPI -0.6%, 1
ct. RAPI +0.1% in Feb. with better market for 0.70 to 1.99 ct. De Beers prices flat at $490 million sight. Far East consumer
outlook improving as US and China approach trade deal. Chinese retailers
restocking after Lunar New Year, with Hong Kong jewelry and luxury sales +5% to
$1.1B in Jan. HRD adopts natural-diamond grading language for synthetics
reports.
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: US wholesale trading difficult due to high prices. Secondhand
diamonds emerging as a more profitable market for small-stone dealers. Ovals
strong. Retailers increasingly seeing lab-grown as viable option for low-budget
customers.
Belgium: Dealers report sluggish
sales at Hong Kong show, with diamonds above 10 carats moving slowly despite high
expectations. Overall demand good for 1.00 to 2.99 ct., G-K, VS, 3X. Baselworld
(Mar. 21 to 26) set to be smaller show than usual after high-profile exits.
Israel: Hong Kong show
boosted activity, with steady demand for 0.70 to 1.99 ct. goods. Weaker
movement in dossiers up to 0.49 ct., and 3 ct. and larger sizes. Fancy shapes
slow, except pears and ovals with perfect cuts. Midstream facing difficulties
due to high rough prices, with Israel losing further market share to India.
India: Manufacturers maintaining reduced production
in quiet market. Margins under pressure due to high rough prices at De Beers
sight and subdued polished demand. Steady orders for 0.50 to 1.99 ct., G-H,
VS2-SI1 (3X, no fluorescence). Stones with good or fair cut very hard to sell.
Melee stable, with selective demand for stars, but manufacturers want to sell
bigger melee sizes, as they offer better profits. Traders and manufacturers showing
growing interest in synthetics.
Hong Kong: Sentiment positive after
show, with retailers replenishing stock following Chinese New Year sales.
Exhibitors not lowering prices with strong demand for 1 ct., D-K, nice SIs in short supply. Chinese consumers moving away from 0.50 ct.
category, opting for 0.30 or 1 ct., F-J goods. Alternative cuts popular and offering
good margins. Sales of yellows and pinks improving. Dealers optimistic despite
ongoing concerns about trade war.
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