Summer lull continues. Polished suppliers cautious for 2H amid
trade-war uncertainty, weak dealer demand and tight manufacturing profit.
Miners reducing rough supply, with De Beers allowing additional deferrals at
July sight. De Beers 1H revenue -17% to $2.6B, earnings -7% to $187M, rough
price index -4%. Petra lowers 2020 production plan to 3.8M cts. US jewelry
sales stable, despite weakness at majors and declining store count: JBT reports
185 retailers closed in 2Q, 56 opened. Tariff tensions and political protests
impact Hong Kong luxury spending as Luk Fook FY1Q same-store sales -10%. New India
data shows June lab-grown polished exports +64% to $24M, imports +132% to $16M.
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: Polished trading seasonally quiet. Buyers
focused on round, 1.50 to 2.10 ct., G-H, VS-SI range of goods. Fancy shapes and
other sizes slow. A lot of available inventory that’s difficult to move.
Suppliers of melee shifting to better qualities to get better profit margins.
Retail sales steady, but mall-based jewelers struggling.
Belgium: Active market before the bourses close for three-week
summer vacation (July 29 to August 19). Suppliers trying to hold prices firm,
hoping demand will improve after the break. Dossiers slow, but 0.30 to 0.50
ct., E-G, VVS goods moving well. Rough-market sentiment weak amid concerns of
financial distress. Low rough supply during De Beers sight week.
Israel: Trading sluggish amid weak global demand. US
orders supporting the market, whereas Far East remains quiet. Dealers looking
for opportunities in niche items. Difficult to source the right commercial
goods. Tight profit margins on available stock. Steady demand for 1 to 1.99
ct., G-H, VS-SI, RapSpec A3+ diamonds. Rough trading slow.
India: Trade cautious
amid tight liquidity and diminishing credit. Some overseas buyers in
Mumbai looking for bargains from companies that need to boost cash flow. 0.30
to 0.49 ct. selling well in parcels after suppliers stopped certifying SI
goods. Manufacturing down by estimated 25% to 30% compared to a year ago.
Improvement in cheap melee suggests some resistance to CVD.
Hong Kong: Wholesale and retail sectors continue to
struggle as ongoing political protests deter foreign traders and tourist
shoppers. Chinese market also cautious due to trade war. Other Asian markets
such as Indonesia, Thailand and Vietnam stable. Dealers avoiding large-volume
purchases as polished prices continue to soften. Steady demand for 0.30 to 0.50
ct. and 1 ct. H-J, VS-SI dossiers.
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