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Rapaport Weekly Market Comment
Jan 2, 2020 10:58 AM
By Rapaport News
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Happy New Year! Diamond market gaining confidence for 2020 after relatively good holiday season. Polished prices stable, supported by US and Chinese holiday demand. 1 ct. RAPI -0.2% in Dec. and -5.3% for full year. RAPI for 0.30 ct. +1.7% in Dec. due to China orders, amid positive outlook for Jan. 25 lunar festival. Hong Kong luxury weak as protesters start year with massive demonstration. Dealer trading quiet over holidays. Suppliers reduced inventory levels, but still holding large volume of less desirable goods. None-to-faint fluorescence selling well and in short supply. New decade presents opportunity to boost diamond-jewelry demand with significant investment in marketing.
Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Larger emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.
United States: Seasonal lull in wholesale and retail activity over New Year. Conference Board reports consumer confidence slightly down in December. Stable demand for 1 ct., G-J, SI-I2 diamonds. Still a lot of goods out on memo. Dealers unsure how much new inventory retailers will require after Christmas.
Belgium: Diamond trading slow, with the bourses and most businesses closed for holidays until January 6.
Israel: Bourse relatively quiet as clients in US and Europe are on vacation. Memo houses waiting for feedback on holiday sales. Focus shifts to demand for the Chinese New Year. Suppliers maintaining firm prices when filling orders for specific goods. Very little rough trading going on.
India: Polished market quiet with very few foreign buyers in Mumbai over the New Year holiday. Manufacturers raised production since Diwali but continue to operate below capacity. Rough demand improving amid shortage of better-quality (RapSpec A3+) goods and in anticipation of first-quarter inventory replenishment. Local jewelry market limited by high gold prices.
Hong Kong: Market quiet, with many dealers on vacation over Christmas and New Year. Wholesale sentiment improving as jewelers prepare inventory for Chinese New Year on January 25. Good demand from mainland China and positive expectations for the season there. Hong Kong retail sentiment weak amid 56% decline in tourist arrivals in November as protests continue.
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Tags:
Rapaport News
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