Diamond market optimistic despite expected seasonal slowdown. Manufacturer liquidity getting boost from reduced inventory, faster turnover and firm prices. Concerns arising about rough market overheating amid reports that Alrosa increased prices for 1 ct. and larger by 4%-5%. Smaller De Beers sight expected next week. India Feb. rough imports flat at $1.5B, Belgium +28% to $877M. Signet Jewelers FY’21 revenue -15% to $5.2B, loss of $15M vs. $106M profit in FY’20. GIA begins disclosing post-growth treatments for synthetics. CIBJO launches guide to natural vs. lab-grown diamond terminology. World Diamond Council, RJC partner on conflict diamonds and sustainability issues.
Fancies: Market for fancies seeing upturn. Some higher prices as consumers seek alternative shapes at more affordable prices than rounds. Dealers witnessing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: Sentiment positive. Dealers hoping for stability rather than continued price increases that may not be sustainable. Bridal segment buoyant and seeing steady calls for 1 ct., G-I, VS-SI, 3X goods. Old mine and old European cuts above 1.50 ct. also in strong demand. Jewelers optimistic that stimulus checks will boost consumer discretionary spending.
Belgium: Slight slowdown from previous weeks, but outlook still upbeat. European retail struggling due to Covid-19 measures and lack of tourists. Focus is on supply to US and mainland China clients. Solid dealer interest in 0.30 to 1.99 ct., G-J, VS-SI. Rough trading quieter as prices continue to firm and fewer goods become available.
Israel: Steady rise in activity since the bourse returned from lockdown. Dealers concentrating on local trading given that travel is still restricted. Online platforms also important outlet for sourcing goods. US demand driving orders; focus on 1 ct., G-J, VS-SI engagement ring center stones. Fancy shapes robust, with shortage of nice ovals and emeralds for fine jewelry.
India: Improvement in Far East market is lifting sentiment. Steady appetite for 0.30 to 0.70 ct. diamonds in D-F colors. Dossiers and 1 ct., 3X stones moving well. Good demand for pears, ovals, emeralds and radiants. Polished production close to full capacity. Profit margins tightening as rough prices continue to climb. Business likely to slow as summer season approaches.
Hong Kong: Stable wholesale trading; good movement in round, 0.30 to 0.80 ct., F-J, VS-SI and 1 ct., D-I, VVS-SI categories. Above 2 ct. slower. E-commerce supporting Chinese jewelry sector. Online consumers showing steady interest in 0.30 to 0.50 ct., G-J, SI diamonds. Hong Kong retail weak amid slight rise in Covid-19 infections and concerns of further restrictions if outbreak expands.
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