Low expectations for Basel show amid weak large-stone
demand and fewer diamond, jewelry and watch exhibitors. US stable, with good orders
for commercial-quality 0.70 to 1.99 ct., G-J, SI-I2 diamonds. Shortages
developing for better qualities as India cuts back production. Rough market
quiet, with deep concerns about manufacturing profitability. Alrosa 2018
revenue +9% to $4.6B, profit +15% to $1.4B. De Beers launches $2B Jwaneng mine
expansion. India Feb. polished exports -4% to $2.3B, rough imports -18% to
$1.4B. CIBJO specifies need to disclose treatments for both natural and
lab-grown diamonds and gemstones. Fugitive jeweler Nirav Modi arrested in
London.
Fancies: Fancy-shape market stable, driven by
US and European demand for fashion jewelry. Supply shortage supporting prices
for Pears, with 1.50 ct. the strongest category. Radiants improving. Marquises
and Princesses weak. Excellent-cut Ovals, Cushions, Pears and Emeralds doing
well, with steady orders for fine-quality goods in 6 to 10 ct., and prices
firming for 3 to 5 ct. due to shortages. Chinese consumers seeking fancy shapes
at better prices. US sustaining 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: Steady New York trading. Dealers
selling old stock, with few new goods coming onto the market, as manufacturing
has declined. Difficult to find right products to satisfy buyers’ specific
requirements. Jewelry retail sales stable with no major holidays to boost
demand. Jewelers focused on bridal; engagement-ring sales going strong ahead of
summer wedding season.
Belgium: Mixed sentiment,
with good demand for 1 to 1.99 ct., H-K, VS2-SI2 diamonds. Steady orders for
pears, cushions and ovals. Market for fancy colors relatively quiet. Some
interest in Basel show, but fewer dealers attending. Profit margins tight, with
reduced rough supply supporting prices, while polished continues to soften.
Rough activity down following last week’s Alrosa sale.
Israel: Quiet market during
a short week, with offices closing Thursday for Purim holiday. Many
dealers attending Baselworld as visitors rather than exhibitors, hoping to do
business on the sidelines of the show. Large stones above 3 ct. weak. Steady orders
for 1 ct., G-J, VS-SI diamonds. Shortage of nice ovals and pears supporting
prices. Rough trading cautious amid tight profit margins for dealers
and manufacturers.
India: Sentiment weak amid slow polished trading.
Foreign buyers looking for bargains and pushing for deeper discounts on goods
below 0.50 ct. Local dealers cautious, despite boost from rupee’s rise to INR
68.6/$1. Liquidity tight due to overseas purchasers delaying payments, and
businesses settling accounts before the financial year-end. Rough market
subdued as cutters try to reduce polished inventory and avoid manufacturing
low-profit rough.
Hong Kong: Polished activity
stable. Good market for pointer sizes at reduced prices. Steady interest in 1
ct., D-H, VS-SI, with lower I-M colors also selling well. 2 ct. and larger
stones sluggish. Buyers insisting on 3X, no fluorescence. Jewelry retail
relatively slow after the Chinese New Year season.
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