Sentiment weakens after soft first quarter. Dealers avoiding large inventory
purchases, and manufacturers reducing supply. Miners bracing for tough year as first-quarter
sales decline an estimated 30%. Rough market under pressure, with some analysts
optimistically predicting flat rough prices in 2019. Sightholders hoping profit
margins will improve after next week’s sight. Baselworld announces price cuts and changes to diamond section,
after smaller 2019 show. Alrosa estimates 2018 global diamond-jewelry sales +4%
to $85.9B. Tiffany 2018 revenue +7% to $4.4B, profit +58% to $586M. US 2018
polished imports +8% to $23.3B. GIA to introduce polished-diamond
country-of-origin report.
Fancies: Fancy shapes stable, driven by US and European demand. Ovals for fashion
jewelry in good demand. Supply shortage supporting prices for Pears, with 1.50
ct. the strongest category. Radiants improving. Marquises and Princesses weak, despite
reduced manufacturing. Excellent-cut Ovals, Cushions, Pears and Emeralds doing
well, with steady orders for fine-quality goods in 6 to 10 ct. 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: Dealer trading slow as retailers are increasingly
cutting out the middle man. Demand specific, with steady interest in 1 ct.,
G-J, VS2-I1 diamonds. Goods below 0.50 ct. and above 3 ct. weak. Ovals selling
well at wholesale and retail. Jewelry sales stable, with strong emphasis on
engagement and bridal ahead of summer wedding season.
Belgium: Sentiment weak, with little excitement
about the Basel show. Buyers are
selective, filling specific orders and avoiding large inventory
purchases. New goods selling well, with shortage of top-select-quality diamonds
due to lower production. Steady demand for 1 ct., G-H, VS-SI goods. Rough
trading quiet, with long gap between February and April sights.
Israel: Polished trading quiet, with slowdown in
2 to 5 ct. sizes. Mid-scale companies struggling more than large and smaller entities,
which are better at navigating unpredictable markets. Focus shifting back to US,
with good demand for RapSpec A3, 3X, eye-clean SIs. Fancy-shape prices
supported by low supply rather than strong demand. Pears and ovals hot in 1.50
ct., F-G, VS.
India: Domestic market slow, with fewer overseas
dealers in Mumbai. Buyers pushing for deeper discounts on diamonds below 0.50
ct. and above 3 ct. Good US and Chinese demand for nice SIs. Liquidity tight as
dealers settle accounts ahead of March 31 financial year-end. Manufacturers
maintaining low polished production, after reduced first-quarter rough
purchases.
Hong Kong: Wholesale trading slow after Chinese New Year season, with economic
uncertainty fueling caution for upcoming May 1 holiday. China retail improving
as consumers are choosing to spend locally rather than abroad. Momentum
continues for 1 ct., D-I, VS-SI. Shortage of nice SIs causing shift to better
clarities. 0.30 to 0.50 ct. dossiers moving better as prices continue to
soften.
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