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Rapaport Weekly Market Comment
Apr 16, 2020 11:02 AM
By Rapaport News
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Diamond industry under stress as mining, manufacturing and retail centers remain closed during COVID-19 lockdown. US government starts $2.2 trillion stimulus to help relieve liquidity pressures as new unemployment claims exceed 20 million in April. US retail sales slide -6.2% in March. China retail reopening to light traffic. Chow Tai Fook 4Q China same-store sales -50%, Hong Kong/Macau -65%. Some junior miners deem operations uneconomical at current low rough prices. Petra Diamonds prices -27% in March. Alrosa reduces inventory -6% to 21.1 million carats in 1Q, sells $149M rough and $4.2M polished in March. Exhibitors clash with Baselworld over refund policy as watch majors Rolex, Patek Philippe, Chanel, Chopard and Tudor pull out.
Fancies: Fancy shapes sluggish amid lockdown of US retail, the strongest market for commercial-quality, medium-priced fancies. Weakness across all categories, including top makes and large sizes, as luxury brands temporarily shut stores. Downtrend due to external forces beyond industry’s control and affecting all products. Inventory still low in some categories of Pears and Ovals, but very little demand. High availability of other categories, with Cushions showing similar price declines to rounds. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: New York trading limited to sporadic online deals amid city shutdown. Retailers closed nationwide, with major jewelers furloughing workers. Many small businesses applying for government loans. Trade organizations focusing on online educational programs, including webinars by the Gemological Institute of America (GIA) and Jewelers of America (JA).
Belgium: Antwerp’s four bourses remain shut. AWDC to host webinar on April 17 explaining government support measures during COVID-19.
Israel: Short week due to seven-day Passover festival that ended on Wednesday. Israel Diamond Exchange president Yoram Dvash outlines benefits available to diamantaires in Facebook post.
India: Government extends lockdown to May 3. Some manufacturing sectors could resume before then. Gem and jewelry exports decline 41% in February.
Hong Kong: Wholesale and retail markets reopening with caution but not expecting a quick recovery. Dealers assessing polished price levels and availability. Retail inventory levels higher than normal, with Chow Tai Fook reporting 15% year-on-year inventory increase on February 29. Hong Kong shows rescheduled for August.
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Tags:
Rapaport News
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