Trading relatively quiet as jewelers begin restocking
after holiday season. Top-tier independents and luxury retailers outpacing
large jewelry chains: Signet Jewelers Nov./Dec. sales -3% to $1.8B, Richemont’s
Cartier and Van Cleef & Arpels 3Q revenue +9% to $2.3B, Forevermark 2018 US
sales +8%. Cautious outlook for Chinese New Year as Chow Tai Fook 3Q same-store
sales -7% in China, -6% in Hong Kong/Macau. India trade uncertain due to
tightening bank credit, slim profit margins, and excess inventory of unwanted
lower-quality polished. Rough prices and supply expected to be steady at next
week’s De Beers sight. India 2018 polished exports +6% to $24.4B, rough imports
-9% to $16.9B.
Fancies: Fancy-shape market stable, driven
by US and European demand for fashion jewelry. Ovals are best sellers, followed
by Emeralds, Cushions and Pears. Supply shortage supporting prices for Pears.
Radiants improving. Marquises and Princesses weak. Oversizes selling well.
Steady demand for fine-quality 6 to 10 ct. Ovals, Pears and Emeralds, with
prices firming for 3 to 5 ct. due to shortages. Chinese consumers seeking fancy
shapes at better prices. US supporting market for commercial-quality,
medium-priced fancies under 1 ct. Off-make, poorly cut fancies illiquid and
hard to sell, even at very deep discounts.
United States: Sentiment positive, with dealers and
jewelers relatively satisfied with holiday-season results. Buyers remain
price-sensitive and selective while looking for goods to replenish reduced inventory
levels. Steady demand for 0.50 to 0.70 ct., H-J, SI-I1, lower-quality parcel
goods for stud jewelry. Shortage of excellent-quality large stones above 10 ct.
Bridal and engagement ring sales firm as consumers prepare for Valentine’s
Day.
Belgium: Polished prices stable amid slow
trading. Big-stone dealers doing well, with improving demand for large fancy
shapes. Dossiers below 1 ct. firm. Steady orders for 1 to 3 ct., G-J, VS-SI, 3X
diamonds. A lot of goods still out on memo. Rough market quiet ahead of next
week’s De Beers sight.
Israel: Dealers cautious, waiting to assess the
market impact of US holiday results, Chinese New Year demand, and rough prices
at De Beers Jan. sight. Notable rise in inventory of 1 ct., I-M, IF-SI
products. Spike in availability of 0.30 ct., I-M, VS, RapSpec A3+ diamonds.
Suppliers hoping bourse’s International Diamond Week (Jan. 28 to 30) and the
Hong Kong show (Feb. 28) will boost trade.
India: Activity slower than usual for January.
Dealers focused on China and Hong Kong for Chinese New Year period. Domestic
demand steady as jewelers push bridal during ongoing wedding season.
Manufacturers remain cautious due to tight profit margins, with factories
operating below capacity since Diwali. Suppliers holding stock in preparation
for Hong Kong show.
Hong Kong: Good wholesale trading as jewelers
enter peak Chinese New Year selling season. Jewelry manufacturers starting to
close for the season, but dealers will operate until the last minute. Retailers
concerned cautious economic outlook will affect consumer sentiment. Solid
market for 0.30 to 0.70 ct., G-K, VS-SI, 3X diamonds; collection goods weaker.
Rising consumer interest in fancy shapes.
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