Diamond market quiet as US dealers take
vacation. America supporting the trade with steady retail sales and expected
boost from Independence Day weekend. Midstream under pressure with tight
liquidity, slow orders and excess inventory. Weak sentiment continues as
polished prices soften. 1 ct. RAPI -1.4% in June. Manufacturers buying polished
rather than rough, as they need to focus on profitability instead of turnover. Buyers
taking advantage of suppliers’ need for cash and pushing for discounts. PwC
predicts Hong Kong retail sales will slide 5% in 2019 as demonstrations,
reduced tourist spending, and trade war affect business. Luk Fook FY revenue +9%
to $2B, profit +10% to $193M.
Fancies: Fancy shapes soft, reflecting slowdown in high-end demand. 3 to 8
ct., I-K, VS-SI1 moving better than rounds as dealers and consumers shift to
lower price points. Well-known brands are paying best prices, as are buyers
with specific requests. Ovals for fashion jewelry moving well, especially 1.50
and 2 ct., G-H, VS and H-K, SI2. Marquises and Princesses weak despite reduced
manufacturing. US sustaining market for commercial-quality, medium-priced fancies
under 1 ct. Chinese consumers seeking fancy shapes at better prices. Off-make,
poorly cut fancies illiquid and hard to sell, even at very deep discounts.
United States: Wholesale market quiet, with businesses closed for two-week summer
break. Diamond Dealers Club of New York to reopen on July 9. Stable engagement
and bridal sales during summer wedding season. Some fashion jewelry promotions
over July 4 holiday.
Belgium: Polished market stable for 1 to 1.50 ct., G-J, VS-SI goods. D-F,
IF-VVS categories continue to soften. Fancies moving better than rounds, with steady
demand from European jewelers. Fancy-color
diamonds relatively weak, particularly commercial-quality yellows. Rough
trading quiet, with less available supply after small De Beers and Alrosa
sales.
Israel: Slow activity with deep concerns about tight liquidity and lower
sales. Many dealers have reduced operations in recent years, which has helped
shield them from the current downturn. Stable demand for 1 ct., G-J, VS-SI,
RapSpec A3+ diamonds. Bourse urges consumers to “love real diamonds” in social
media video campaign. Click here for video.
India: Cautious sentiment
amid ongoing liquidity concerns and sparse orders. Heavy monsoon rains
affecting business, with delays in delivery and worker arrivals. Fewer foreign
buyers in Mumbai. Good demand for top-make SIs and lower piqué goods.
Manufacturers keeping production 30% to 40% below last year’s levels.
Hong Kong: Trading down due to sluggish demand, slow season and political
protests. Steady market for 0.30 ct., D-H, VS-SI, RapSpec A3+ goods, but prices
continue to soften. Jewelers putting price pressure on suppliers with liquidity
issues. Fewer top-make SIs available. Retail sales sliding due to political
protests, reduced tourist spending, and impact of trade war.
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