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Rapaport Weekly Market Comment
May 7, 2020 11:02 AM
By Rapaport News
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Trading limited but sentiment up slightly as Antwerp prepares to reopen trading floors on May 11. Select services returning to Israel Diamond Exchange. New York still on lockdown, restricting US diamond activity. 1 ct. RAPI +0.2% in April. Manufacturers curtailing rough purchases to ease liquidity pressure and focus on depleting polished inventories. Alrosa expected to reduce 2020 production guidance after suspending operations at two lower-grade mines. Gradual reopening of economy in China signals some pent-up demand in bridal and among female self-purchasers. COVID-19 crisis accelerating shift to digital consumption. Pandora 1Q revenue -13% to $606M, online sales +29%. Baselworld cancels show scheduled for Jan. 28, 2021.
Fancies: Fancy shapes sluggish amid lockdown of US retail. 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’s 47th Street very quiet with non-essential businesses limited to minimum operations or remote work. Polished imports from Belgium plunged 98% to $6.9 million in April, according to data from Antwerp World Diamond Centre (AWDC). Some states allowing retail to resume. Signet Jewelers reports 130 of its nearly 3,000 US stores back to operating at partial capacity. Jewelers relying on social media channels, phone and video calls to connect with consumers.
Belgium: Government urges caution as bourses prepare to reopen next week. Rough market at a standstill during De Beers sight week, as Indian manufacturers plan to freeze buying from May 15. Rough exports fell by 96% to $35 million and polished imports by 89% to $95 million in April.
Israel: Diamantaires returning to their offices, but activity low. Some orders from Far East. Diamond exports declined 82% in April. Certain facilities have resumed operations at the bourse, including customs, the diamond comptroller’s office, banks, the post office and the Brinks safety deposit room. Trading floor remains shut.
India: Dealers and manufacturers trying to clear exports to Hong Kong as authorities extend lockdown by two weeks. Eight manufacturing units in Surat Special Economic Zone (SEEPZ) get green light to resume limited operations. Cutters planning 30-day moratorium on rough imports from May 15. Polished exports to Belgium slide 99.9% to just $146,000 in April, reports AWDC.
Hong Kong: Economy carefully reopening in both Hong Kong and China. Some orders from dealers, but demand weak. Global travel and shipment restrictions still curbing activity. Jewelers pushing online sales as stores work to overcome impersonal social distancing measures.
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Tags:
Rapaport News
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