Rough sales plummet due to
lack of profit and liquidity squeeze. Midstream pressures caused by high 2017/18
rough supply at inflated prices, combined with tighter inventory controls by
retailers. Sightholders refuse goods as De Beers keeps prices stable at $250M
July sight. Rio Tinto 1H diamond revenue -16% to $271M, loss of $5M. Polished
prices continue to soften, with July 1 ct. RAPI -0.9%. Rough prices must come
down to restore profitable trade. Miners and brands need to invest
significantly more to raise diamond-jewelry demand. Israel bourse publishes
second “I Love Natural Diamonds” social-media video. Jewelers of America raises
$300,000 to test consumer-focused ad campaign.
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: New York dealers cautious. Melee market slow. Some
interest in large stones, but buyers offering low prices that suppliers are
refusing. Manufacturers of niche shapes such as rose cuts and briolettes doing
well. Jewelers monitoring available inventory and price levels as they assess
their stock requirements for the holiday season.
Belgium: Very little activity, with most diamantaires on summer
vacation. Bourses closed until August 22. Some Antwerp-based Indian dealers in
Mumbai looking for goods.
Israel: Polished trading quiet, with dealers ready to take
early vacation. Bourse to close from August 12 to 22 for summer break.
Inventory coming down due to reduced Indian manufacturing, but RapSpec A3+
goods still difficult to sell and prices are softening. Widening gap between none
and faint fluorescence. Ovals and pears best-selling fancy shapes.
India: Some improvement from last week, with more foreign
buyers looking for goods. US demand supporting the market. Manufacturers still
under pressure and maintaining low production levels. Not much buzz for next
week’s IIJS Mumbai show, with gold-jewelry suppliers concerned about high gold
price. Rough trading slow after small De Beers July sight.
Hong Kong: Sentiment weak as ongoing protests and trade war
impact wholesale and retail sales. Jewelers maintaining low stock and shifting
to lower price points. Some improvement in 0.30 to 0.49 ct., J-M, SI diamonds.
Goods above 2 ct. weak, with buyers pushing for deeper discounts. Major
jewelers focused on driving sales in mainland China, rather than Hong Kong.
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