Industry News by Nemesis

Rapaport Weekly Market Comment

August 31, 2017

Polished market cautious as dealers prepare for Hong Kong show. Chinese buyers expected to test the market with offers at high discounts. Rising liquidity concerns following est. $100M default by Indian manufacturer InterJewel. Rough trading slow during De Beers sight, with build-up of excess rough and polished inventory. Alrosa 2Q revenue -16% to $1.2B, profit -38% to $430M. Chow Sang Sang 1H sales +3% to $1B, profit +8% to $50M. Sarine launches 4Cs grading reports with automated technology for measuring color and clarity. Alrosa calls off rescue mission at flooded Mir mine, declares 8 dead. De Beers increases 2017 marketing budget to $140M ahead of holiday season. 

Fancies: Ovals gaining popularity with US consumers. Pears and Cushions steady. Squares soft, with declining interest in Princesses. US demand supporting market for commercial-quality, medium-priced fancies for sizes under 1 ct. Selective buyers of large, fine-quality fancy shapes facing limited supply. Far East demand improving as consumers seek fancy shapes at better prices. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts. 

United States: Polished trading slowly returning to normal after quiet summer. Cautious sentiment in changing retail environment. Dealers hoping improved earnings at the majors will translate to stronger retail inventory buying. Rising expectations for fourth-quarter holiday season. Steady demand for 1 to 2 ct., G-H, VS-SI, triple Ex diamonds and some interest in large stones. 

Belgium: Polished market sentiment improving as dealers prepare for Hong Kong Jewellery & Gem Fair beginning September 13. Dossiers slow. 1 to 2 ct. sizes steady. Buyers pushing for higher discounts, while suppliers are holding prices firm ahead of the show. Rough market cautious during De Beers sight week. 

Israel: Dealers waiting for Hong Kong fair, but many are going to the show to source goods rather than sell. Stable US demand for memo goods. Shortage of large, fine-quality large diamonds. 4 ct. weak. Rough trading slow. 

India: Sentiment weak, with default by InterJewel fueling market liquidity concerns. Rising expectations for Hong Kong show. Increased inventory of sizes below 1 ct. Dossiers slow. Manufacturing levels stable, with large volume of rough on the market. Rough trading slow.

Hong Kong: Market focused on preparations for Hong Kong show. Buyers pushing for higher discounts, sensing suppliers need to reduce inventory and raise liquidity. Steady demand for 0.30 to 1 ct., F-H, VS-SI, RapSpec A2+ (triple Ex, no fluorescence) diamonds. Jewelry retail sales steady, with strength in China and improvement in Hong Kong.


Source: Rapaport

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