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Rapaport Weekly Market Comment
Jul 14, 2022 10:00 AM
By Rapaport News
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News: Polished market flat during summer lull. US jewelers optimistic for 2H despite economic uncertainty and inflation +9.1% in June. Rough prices stable at De Beers sight. Manufacturers competing for responsibly sourced rough. Cutters have reduced operations due to scarcities and lower polished demand; larger factories shifting between natural and lab-grown production based on availability and price trends. Gahcho Kué 2Q production -29% to 1.3M cts. Chow Tai Fook 1Q sales -4% due to China pandemic resurgence. Watches of Switzerland FY revenue +37% to $1.5B, profit doubles to $121M. Iris Van der Veken named executive director of Watch & Jewellery Initiative 2030 for sustainability.
Fancies: Market stable. Supply shortages of well-cut fancies supporting prices. 1.20 to 3.99 ct., F-J, VS-SI is hottest category. Oval is leading shape, followed by Radiant, Emerald, Pear, Cushion and Marquise. Retailers offering broader product ranges as consumers seek alternative cuts. Growing interest in fancy-shape engagement rings. Oversizes trading at higher prices than usual. Excellent shapes commanding premiums. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: Trading slow with most wholesalers on summer vacation. Steady dealer demand and firm prices for 2 ct., G-I, VS2-SI2, 3X diamonds. Very few bulk inventory orders during summer. Suppliers agreeing to short-term memo to satisfy jewelers’ immediate requirements. Fancy shapes moving well; ovals are hottest item. Department stores continue to rank jewelry among their best sellers.
Belgium: Sentiment mixed. Activity already slowing ahead of August vacation. US orders supporting the market. China quiet. European buyers cautious after euro slides to parity with US dollar (EUR 1 = $1) for first time in 20 years. Brands continue to buy for new collections. 1 to 1.50 ct., D-J, VS-SI selling well. Rough trading stable during De Beers sight.
Israel: Market quiet with major US clients on break and China sluggish after Covid-19 lockdowns. Prices softening as suppliers look to raise liquidity and offload excess inventory. Steady sales of 1 ct., G-J, VS-SI goods. Top-quality fancies and large stones performing well as high-end luxury remains strong. Rough specials (above 10.8 ct.) difficult to buy in competitive auction circuit.
India: Activity down during US summer break. Trading unpredictable due to global economic concerns. Hong Kong and China weak; demand has not yet recovered from Covid-19 restrictions. Small goods performing better than 1 ct. and larger. Polished production below capacity amid scarcities and firm rough prices.
Hong Kong: Wholesale seeing seasonal lull. Retail slow in Hong Kong and mainland China amid sluggish economy and summer vacation. Lack of tourism still hampering luxury sector as Covid-19 quarantine rules remain. Jewelers expect weak consumer sentiment through third quarter. Dealers reluctant to purchase in down-trending market.
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Tags:
Rapaport News
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