|
|
Rapaport Weekly Market Comment
Jan 30, 2020 10:58 AM
By Rapaport News
|
|
|
Chinese coronavirus outbreak raising concerns about retail demand as businesses extend Lunar New Year shutdown. Travel restrictions likely to affect global trading, leading to possible polished oversupply following strong rough demand. De Beers Jan. sales +9% to $545M as sightholders replenish inventory after good holiday season. Petra Diamonds 1H revenue -6% to $194M but notes rough-price increase in early 2020. LVMH 2019 jewelry and watch sales +7% to $4.8B with strong year at Bulgari. De Grisogono files for bankruptcy after reports link it to Isabel dos Santos corruption probe. Martin Rapaport Keynote Presentations at Israel Diamond Exchange Feb. 10 and Palm Beach Show Feb. 16.
Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. 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. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. 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 difficult to sell.
United States: Trading stable following solid holiday season. Steady demand for round, 1.25 to 2.50 ct., G-I, VS-SI diamonds, with ovals moving well and interest in emeralds growing. Weak market for expensive 3 ct. and larger stones in high colors and clarities. Dealers struggling to replace inventory due to high prices of rough and polished. Exhibitors unsure whether to attend March Hong Kong show due to coronavirus outbreak.
Belgium: Market cautious as Chinese virus reducing Asian demand. Buyers reluctant to buy rough as health crisis could make it hard to sell the polished. Good demand for round, 0.30 to 0.60 ct. collection goods, with 1 ct. stable. Customers showing appetite for larger 2 ct.+ diamonds, but only for top cut grades. Fancy colors weak. Dealers anticipate improvement ahead of Valentine’s Day.
Israel: Dealers worried about impact of coronavirus on transport of goods and ability to sell to Chinese market. Rough demand strong at De Beers and Alrosa sales. Israeli companies in better shape than others as solid holiday sales left them with diminished inventory. Industry preparing for Israel International Diamond Week, which takes place Feb. 10-12.
India: Slow movement with few overseas buyers visiting during Chinese New Year. Some shortages following reduction in polished production. Manufacturing profits thin as rough prices strengthen at start of year. Cutters and traders increasingly considering lab-grown diamonds in search of better profit margins. Local jewelry market weak despite wedding season. Health scare in Asia adding to caution.
Hong Kong: Markets quiet during Chinese New Year. Uncertainty about upcoming trade show (Mar. 2-8) due to virus situation. Authorities have restricted travel from China and shut public spaces, with schools closed until Feb. 17.
|
|
|
|
|
|
|
|
|
|
Tags:
Rapaport News
|
|
|
|
|
|
|
|
|
|
|