News: Diamond trade sluggish amid growing market uncertainty. Disposable income squeezed by high inflation and rising interest rates. China’s economy slowing due to Covid-19 lockdowns, crackdown on private sector, real-estate crisis and social protests. Manufacturing liquidity tight; some reducing prices to boost turnover. Polished inventory rising despite decline in rough supply. De Beers raises 2022 production plan to 32M-34M cts. after 2Q output -4% to 7.9M cts., sales volume +29% to 9.4M cts., price index +28%. India June polished exports +2% to $2B, rough imports +4% to $1.7B. Sotheby’s sells $18M, with emerald-cut, 11.02 ct., D, IF Graff ring going for $983,068 ($89,207/ct.).
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: Stable market as dealers return from summer vacation. Demand driven by bridal during wedding season. Steady orders for round and ovals, 1.50 ct., G-I, SI-I1 diamonds. Consumer traffic remains steady, but buying is not as strong as earlier in the year. Jewelers reluctant to own large inventories. A lot of goods sent on memo, with suppliers preferring short terms.
Belgium: Shorter week due to Thursday public holiday. Polished trading quiet amid US and European economic caution and China slowdown. Dealers still optimistic for fourth-quarter holiday season. More diamantaires diversifying and developing jewelry collections. Rough trading stable after De Beers sight.
Israel: Cautious sentiment, with activity restrained in the diamond exchange. Few foreign buyers present; local dealers purchasing to fill specific orders. Finding the right certified stones proving difficult with diamantaires focused on top-quality goods (3X, no fluorescence). Large companies seeing sporadic orders for retail programs. US demand supporting the market despite economic uncertainty.
India: Market uncertain amid exchange-rate volatility, with rupee hitting record low of INR 80/$1. US demand supporting trade amid weakness in China and Hong Kong. Most purchases are for specific orders rather than inventory. Steady interest in 0.40 ct. and 0.70 ct. diamonds. Polished production limited amid supply concerns as absence of Russian rough creates shortages. Industry assessing new mechanism enabling international trade in rupees.
Hong Kong: Trading slow during low season and as travel to mainland remains restricted. Sluggish local economy denting sentiment, with weakness in all diamond categories. Chinese jewelers increasingly demanding memo deals as lockdowns have created uncertainty. Low expectations for upcoming Hong Kong International Jewellery Show.
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