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Rapaport TradeWire July 25, 2019
Jul 25, 2019 11:30 AM
By Rapaport
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| July 25, 2019 | | RAPAPORT MARKET COMMENT |  | | 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. | | | RAPNET DIAMOND INDEX (RAPI™) | | | | Weekly | Monthly | Y2Y | | 0.30 ct | -0.66% | -4.06% | -22.24% | | 0.50 ct | -0.43% | -3.03% | -9.44% | | 1.00 ct | 0.11% | -1.09% | -5.72% | | 3.00 ct | 0.12% | -2.73% | -17.43% |  | | The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. | | | | Market Reports | | |  | United States: A lot of available inventory that’s difficult to move... |  |  | Belgium: Rough-market sentiment weak amid concerns of financial distress... | | |  | Israel: US orders supporting the market, whereas Far East remains quiet... | | |  | India: 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... | | |  | | | An Industry in Crisis? |  | | WITH The Rapaport Diamond Podcast | The diamond sector is facing multiple challenges, from weak profitability and tight liquidity to shaky consumer demand. Our latest podcast seeks out the positives, and discusses what companies can do to improve their situation. |  | | | WEEKLY NEWS | | industry | | | | Jewelry Business Closure Rate Drops | | Number of US companies exiting the market decreases 21% year on year in the second quarter. |  | | | Indian Tax Office Lightens Exporters’ Load | | Diamonds shipped out of the country for consignment or trade shows will no longer attract GST. | | | | | De Beers Testing Carbon-Neutral Mining | | Company receives grant for research at its Gahcho Kué site in Canada. | | | | | Belgium Trade Cuts Diamond-Research Funding | | AWDC says it can no longer afford to support organization behind automated polishing. | | | | | retail | | | | US Retail Sales Gain Strongly in June | | Figure up 2.3% year on year, says NRF. | | | | | Bulgari Boosts LVMH Jewelry Growth | | Revenue for the category rises 8% in first half. | | | | | Hong Kong Slowdown Hits Swiss Watches | | Exports to the country fell 27% in June. | | | | | Luk Fook Sales Drop Due to Trade War | | Dispute has had “continuing impact” on market sentiment, jeweler says. | | | | | mining | | | | De Beers Profit Falls Amid Market Slump | | Retail and midstream oversupply impacts margins in first half. | | | | | Petra to Reduce Production as Prices Slip | | Miner will cut back its tailings operations due to weak small-stone market. | | | | | Low Grades Dent Mountain Province Output | | Average price rises due to sales of large diamonds. | | | | | Letšeng Yields 124ct. Rough | | Type II white stone is Gem Diamonds’ third over 100 carats this year. | | | | | Lucara Names 1,758ct. Diamond ‘Rare Find’ | | Winner was chosen through a public contest. | | | | | general | | | | Group Offers $1M Prize to Nix Mercury in Mining | | Award will go to anyone who discovers an affordable and reliable alternative. | | | | | Historic Collection of Indian Jewels Goes on Sale | | Pieces belonging to diamond dealer Benjamin Zucker will feature in New York exhibition. | | | | | French Gem Group to Hold Diamond Symposium | | Event comes at time of industry challenges, notes AFG president Didier Giard. | | | | | | FINANCE | | Diamond Industry Stock Report | | | | J.C. Penney (-27%) plummeted following reports the company had hired advisors to explore debt-restructuring options. Hong Kong retail stocks dropped after protests in the municipality negatively affected the luxury sector, with Chow Tai Fook (-13%) and Chow Sang Sang (-3.9%) both falling. Michael Hill (-6%) continued to suffer in the wake of disappointing results and an admission it had underpaid employees. UK-listed miners also had a negative week, as the selection of Boris Johnson as Britain’s prime minister led to uncertainty about Brexit. Firestone Diamonds (-6%) and Gem Diamonds (-6%) both slipped, while Petra Diamonds (-38%) plunged after Berenberg Bank downgraded the stock. | | | | | Contact Us |  |       | | © Copyright 2019 Martin Rapaport. All Rights Reserved. | | Rapaport®, TradeWire®, RapNet®, Index® and JNS® Jewelry News Service are registered trademarks. | |
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