Rapaport Weekly Market Comment
Dec 26, 2019 10:58 AM By Rapaport News

Good momentum as Mastercard reports holiday jewelry sales +1.8%, driven by +8.8% growth in e-commerce. General retail +3.4%. Mall traffic down but more people buying. Stores focused on creating unique customer experience. Tiffany & Co. holiday revenue up 1% to 3%, with strength in China and improvement in Europe and America. Polished trading slow as dealers close for Christmas-New Year. Diamantaires preparing for post-season demand, but manufacturers cautious about raising factory production. Lower rough supply, tech-driven efficiency and ethical sourcing to shape diamond industry in next decade. Rapaport wishes everyone a happy, healthy, ‎prosperous and peaceful New Year.‎

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Larger emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and marquise continue to struggle. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.

United States: Polished trading quiet as wholesalers and dealers take vacation between Christmas and New Year. Retail sentiment positive amid steady holiday shopping. Top-tier independents with strong social media programs doing well. Dealers’ expectations rising for January memo sales.

Belgium: Very little trading with bourses closed until Jan. 6. Some Antwerp-based Indian dealers looking for goods in Mumbai during the break.

Israel: Market in vacation mode during eight-day Hanukkah festival. Suppliers increasingly optimistic after relatively successful season. Dealers waiting for memo returns to assess inventory needs. Focus now on meeting Far East demand for Jan. 25 Chinese New Year and developing strategy for 2020.

India: Polished business slow. Fewer foreign buyers in the market. Some Chinese demand ahead of Lunar Festival. Local jewelers focused on gold products during wedding season. Rough sector seasonally quiet. Manufacturers cautiously raising polished production in anticipation of better orders in 1Q.

Hong Kong: Wholesale sluggish due to Christmas holiday. Some seasonal improvement in retail, but sales still significantly below previous years as protests continue. Tourist arrivals down. Jewelers preparing for Chinese New Year, with positive expectations for mainland.

Rapaport Weekly Market Comment
Jan 2, 2020 10:58 AM By Rapaport News

Happy New Year! Diamond market gaining confidence for 2020 after relatively good holiday season. Polished prices stable, supported by US and Chinese holiday demand. 1 ct. RAPI -0.2% in Dec. and -5.3% for full year. RAPI for 0.30 ct. +1.7% in Dec. due to China orders, amid positive outlook for Jan. 25 lunar festival. Hong Kong luxury weak as protesters start year with massive demonstration. Dealer trading quiet over holidays. Suppliers reduced inventory levels, but still holding large volume of less desirable goods. None-to-faint fluorescence selling well and in short supply. New decade presents opportunity to boost diamond-jewelry demand with significant investment in marketing.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Larger emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.

United States: Seasonal lull in wholesale and retail activity over New Year. Conference Board reports consumer confidence slightly down in December. Stable demand for 1 ct., G-J, SI-I2 diamonds. Still a lot of goods out on memo. Dealers unsure how much new inventory retailers will require after Christmas.

Belgium: Diamond trading slow, with the bourses and most businesses closed for holidays until January 6.

Israel: Bourse relatively quiet as clients in US and Europe are on vacation. Memo houses waiting for feedback on holiday sales. Focus shifts to demand for the Chinese New Year. Suppliers maintaining firm prices when filling orders for specific goods. Very little rough trading going on.

India: Polished market quiet with very few foreign buyers in Mumbai over the New Year holiday. Manufacturers raised production since Diwali but continue to operate below capacity. Rough demand improving amid shortage of better-quality (RapSpec A3+) goods and in anticipation of first-quarter inventory replenishment. Local jewelry market limited by high gold prices.

Hong Kong: Market quiet, with many dealers on vacation over Christmas and New Year. Wholesale sentiment improving as jewelers prepare inventory for Chinese New Year on January 25. Good demand from mainland China and positive expectations for the season there. Hong Kong retail sentiment weak amid 56% decline in tourist arrivals in November as protests continue.

Rapaport Weekly Market Comment
Jan 9, 2020 10:58 AM

Diamond trading seasonally quiet, but diamantaires in positive mood as they return from New Year break. Dealers waiting for memo sale results to assess holiday season. Concern that US economic growth will slow in 2020 election year. Optimism for mainland China during Jan. 25 lunar festival. Hong Kong retail sluggish. Manufacturers cautious about raising factory production, despite expected 1Q inventory replenishment. Polished prices stable, with improvement in 0.30 to 0.50 ct., D-H, IF-VS diamonds due to Chinese holiday demand and shortages of RapSpec A3+ goods. Prices and demand weak for 3 ct. and larger, F+, VVS+ diamonds. Rapaport hosts trade mission to Surat, India.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Larger Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.

United States: Wholesalers reviewing first-quarter inventory requirements. Uncertainty about market direction in 2020. Selective demand for large, old mined diamonds at Miami Beach Antique Show. Estate jewelry sector optimistic. Retailers focused on engagement-ring promotions ahead of Valentine’s Day.

Belgium: Dealer sentiment positive after difficult 2019. Concern about lab-grown impact on small natural stones is increasing as more diamond manufacturers enter the synthetics space. Polished suppliers holding prices firm, especially for nice-make, RapSpec A3+ goods. Rough market stable, with activity expected to pick up during next week’s Alrosa Alliance sale.

Israel: Polished trading steady. Dealers relatively satisfied with holiday season but still waiting for memo returns. Focus on Chinese New Year orders. Solid demand for 0.30 to 0.60 ct., D-H, VS-SI goods. 1.50 ct., F-J, SI2-I1 also selling well. Fancy shapes improving. Manufacturers anticipate robust rough market during Alrosa and De Beers Jan. sales.

India: Jewelry wholesalers cautious due to high gold price and volatile rupee-dollar exchange rate. Diamond trading centered on filling last-minute orders for Chinese New Year. Good demand for 0.30 to 0.60, D-G, I1+ stones. Diamantaires expect upturn in coming weeks as US dealers return for post-holiday trading. Manufacturers maintaining stable polished production below capacity.

Hong Kong: Slight improvement as dealers cater to Chinese New Year demand. Inventory levels down from six months ago. Shortages and steady orders supporting prices for goods below 1 ct. in D-G, VS-SI, RapSpec A3+. Local retail still weak. Optimism for Chinese New Year sales in mainland China.

Rapaport Weekly Market Comment
Jan 16, 2020 10:58 AM

Polished trading stable with selective demand. Dealers focused on filling US orders as jewelers begin post-holiday inventory replacement. Mixed results from the season, with record e-commerce sales driving growth. Signet Jewelers Nov.-Dec. revenue -1% to $1.8B. Rising expectations for Jan. 25 Chinese New Year as US and China sign trade deal. Chow Tai Fook 3Q China sales +17%, Hong Kong -38%. China wholesale slowing ahead of vacation period. Concerns about oversupply amid expectations for large Alrosa and De Beers sights. India 4Q rough imports +5% to $3.8B, polished exports -16% to $4.4B. Lucara collaborates with HB Company and Louis Vuitton to polish 1,758 ct. Sewelô diamond.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Dealer markets cautious. Buyers remain price-sensitive and selective. Stable demand for 1.50 ct., G-H, VS-SI diamonds. Jewelers assessing their inventory requirements and continuing to focus on memo supply. Steady interest in engagement rings as Valentine’s Day promotions begin.

Belgium: Traders more optimistic than before the New Year break. Solid demand for 0.30 to 0.70 ct., D-F, VS-SI diamonds. Good US orders for 1 ct., G-K, SI stones. Fancy shapes slower than expected for this time of year, with interest in ovals. Rough trading steady during Alrosa sale.

Israel: Market stable and dealers gaining confidence. Large volume of less desirable goods available. Diamantaires struggling to differentiate between non- and faint fluorescence despite price gaps. Rising concern that influx of new polished will recreate oversupply and put pressure on prices. Large stones remain weak.

India: Polished trading quiet due to holidays in China and India. Demand from local dealers for dossiers under 1 ct. Fewer overseas buyers than usual for this time of year. Rough buying improving but manufacturers still cautious about raising factory production. Jewelry sales slow due to high rupee gold price.

Hong Kong: Wholesale market quiet as businesses close for Chinese New Year. Focus shifting to retail ahead of the festival. Rising expectations for sales in mainland as US and China reach trade agreement. Hong Kong luxury sluggish. Larger jewelry chains focused on China expansion and reducing Hong Kong presence, with Chow Tai Fook planning to close up to 15 stores in the municipality.

Rapaport Weekly Market Comment
Jan 23, 2020 10:58 AM

Polished sentiment positive following steady holiday sales. Strong interest in 0.30 ct., D-F, IF-VS1, but high-end 3 ct. and larger weak. Increasing rough demand raising polished-oversupply concerns as large quantities expected to enter market in coming weeks. De Beers lifts prices in some categories at Jan. sight and plans changes to rough buying criteria. De Beers 2019 sales -8% to 31M cts. Alrosa 2019 revenue $3.3B (-26%), sales volume 33.4M cts. (-12%). Far East dealer market slow ahead of Lunar New Year. Luk Fook to shut some Hong Kong stores as spending shifts to China. Richemont 3Q jewelry sales +9% to $2.4B. GIA halts sealing service following tampering.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Dealers optimistic for 2020 after positive holiday season for high-end brands focused on design. National Retail Federation reports 4.1% rise in total November-December sales amid strong employment data and personal wealth. Slight lull in trade as retailers handle consumers’ January returns. Select categories showing shortages while concerns grow about oversupply of weaker items. Focus shifts to Valentine’s Day as jewelers start placing orders.

Belgium: Start of year better than expected due to steady US demand. Strong appetite for 0.30 to 0.60 ct., D-I, VS-SI2, certified goods. Fancy shapes moving well, but fancy colors slowing. Dealers nervous about Far East market amid continuing Hong Kong protests. Rough trade preparing for changes to De Beers sightholder system that will see it embrace more subjective methods for determining clients’ allocations of goods.

Israel: Market focused on post-holiday restocking. Peak 2019 selling season flat compared with 2018. Rising interest in round, 0.30 to 0.40 ct., D-F, IF-VS1, RapSpec A3+ diamonds. Steady orders for 0.70 to 1 ct. polished. Large high-end stones weak.

India: Polished slower than usual for this time of year. Dealers worried about repeat of 2019 diamond glut as they anticipate influx of rough following large De Beers and Alrosa January sales. Chinese New Year offering some optimism for suppliers. Local Indian jewelry market weak amid tight liquidity and high gold prices.

Hong Kong: Trading quiet as businesses close for Chinese New Year. Focus after the festival will be on March Hong Kong show, with expectations high amid solid retail demand from mainland. Local jewelry market still slow due to protests and weak tourism industry. Chow Tai Fook and Luk Fook planning to reduce their store networks in affected areas.

Rapaport Weekly Market Comment
Jan 30, 2020 10:58 AM
Chinese coronavirus outbreak raising concerns about retail demand as businesses extend Lunar New Year shutdown. Travel restrictions likely to affect global trading, leading to possible polished oversupply following strong rough demand. De Beers Jan. sales +9% to $545M as sightholders replenish inventory after good holiday season. Petra Diamonds 1H revenue -6% to $194M but notes rough-price increase in early 2020. LVMH 2019 jewelry and watch sales +7% to $4.8B with strong year at Bulgari. De Grisogono files for bankruptcy after reports link it to Isabel dos Santos corruption probe. Martin Rapaport Keynote Presentations at Israel Diamond Exchange Feb. 10 and Palm Beach Show Feb. 16.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Trading stable following solid holiday season. Steady demand for round, 1.25 to 2.50 ct., G-I, VS-SI diamonds, with ovals moving well and interest in emeralds growing. Weak market for expensive 3 ct. and larger stones in high colors and clarities. Dealers struggling to replace inventory due to high prices of rough and polished. Exhibitors unsure whether to attend March Hong Kong show due to coronavirus outbreak.

Belgium: Market cautious as Chinese virus reducing Asian demand. Buyers reluctant to buy rough as health crisis could make it hard to sell the polished. Good demand for round, 0.30 to 0.60 ct. collection goods, with 1 ct. stable. Customers showing appetite for larger 2 ct.+ diamonds, but only for top cut grades. Fancy colors weak. Dealers anticipate improvement ahead of Valentine’s Day.

Israel: Dealers worried about impact of coronavirus on transport of goods and ability to sell to Chinese market. Rough demand strong at De Beers and Alrosa sales. Israeli companies in better shape than others as solid holiday sales left them with diminished inventory. Industry preparing for Israel International Diamond Week, which takes place Feb. 10-12.

India: Slow movement with few overseas buyers visiting during Chinese New Year. Some shortages following reduction in polished production. Manufacturing profits thin as rough prices strengthen at start of year. Cutters and traders increasingly considering lab-grown diamonds in search of better profit margins. Local jewelry market weak despite wedding season. Health scare in Asia adding to caution.

Hong Kong: Markets quiet during Chinese New Year. Uncertainty about upcoming trade show (Mar. 2-8) due to virus situation. Authorities have restricted travel from China and shut public spaces, with schools closed until Feb. 17.

Rapaport Weekly Market Comment
Feb 6, 2020 10:58 AM By Rapaport News

Hong Kong shows postponed to May 18-21 as coronavirus impacts global trade. Weak Chinese New Year sales to reduce 1Q inventory replacement as jewelers are left with large volumes that didn’t sell. Diamond markets quiet. Polished prices supported by shortages, particularly of 0.30 to 0.49 ct., D-F, IF-VVS2 goods. 1 ct. RAPI -0.4% in Jan. Manufacturers cautious, despite strong recent rough buying, as oversupply of lower-quality diamonds remains. Russia’s Eximbank enters diamond lending as Alrosa helps negotiate loan to Dali Diamond. Lucara finds 549 ct. rough at Karowe mine. Martin Rapaport to give keynote presentations at Israel Diamond Exchange Feb. 10 and Palm Beach Show Feb. 16.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Polished trading stable, but dealers lacking usual first-quarter buzz. Little inventory buying as retailers focus on memo and online sourcing. Pockets of good demand, with steady orders for 1 to 1.50 ct., G-J, VS2-I1 diamonds for bridal. Retailers focused on Valentine’s Day promotions. Consumer confidence rises in January, according to Conference Board index.

Belgium: Market relatively quiet after good January trading. Buyers cautious due to renewed uncertainty in China. US and European demand stable. Steady orders for 0.30 to 0.60 ct., F-I, VS2 goods. 1 ct., G-J, VS-SI doing OK. 2 to 4 ct. weak. Rough market slower after strong January sales.

Israel: Slow market, but improvement anticipated during International Diamond Week (Feb. 10-12). Dealers focused on US customers amid China slowdown. Steady demand for commercial-quality diamonds for US engagement rings. Firm prices for 0.30 to 0.49 ct. goods, despite decline in Chinese orders. Fancy shapes stable, with shortages of fine-cut, 1.50 to 10 ct. pears and ovals.

India: Cautious sentiment amid tight liquidity and concerns about oversupply. Manufacturers maintaining low production to avoid flooding the market with goods. Steady demand for 0.30 to 0.50 ct. diamonds. Few overseas buyers in Mumbai after India canceled visas for Chinese visitors. Trade disappointed by 2020 government budget, which kept import duty on gold at 12.5% and polished diamonds at 7.5%.

Hong Kong: Fewer buyers in the market as government imposes two-week quarantine on visitors from mainland China following outbreak of coronavirus. Dealers extending Lunar New Year break or working from home. Chinese jewelers facing sharp sales decline as some cities are on lockdown. Hong Kong luxury suffers toughest year in decade due to city protests, with 2019 jewelry, watches and clock sales -22% to HKD 66.2 billion ($8.52 billion). Virus quashes pre-lunar festival optimism.

Rapaport Weekly Market Comment
Feb 13, 2020 10:58 AM

Dealers and manufacturers cautious, with deep concerns about impact coronavirus will have on the market. Slump in Chinese demand as retail shuts down during peak season, leaving jewelers with high inventory. Chow Tai Fook suspends 40 Hong Kong-Macau stores and 80% of China locations. Liquidity tight as Far East customers delay payments. India’s GJEPC appeals to banks and government for more time on loan repayments. Rough market slowing after strong Jan. sales. Inventory of 0.30 to 0.50 ct. polished rising again. Alrosa CEO Sergey Ivanov pledges to sell 22M ct. rough inventory in responsible manner. US 2019 polished imports -16% to $19.5B. Shane Durgin steps down as Dominion CEO.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Mixed feedback from retailers about Valentine’s Day sales, with online and QVC-type TV platforms doing well. Jewelers offering promotions during Valentine’s Day-Presidents’ Day long weekend. Indian and Israeli dealers shift focus to New York after Hong Kong and China shutdown, creating concern about pending oversupply on 47th Street. Shortage of RapSpec A3+ (3X, none) goods.

Belgium: Sentiment weak and trading levels down amid China concerns. High-end and large stones soft as European luxury houses suspend China operations until virus contained. Top-quality small stones also sluggish amid slowdown in Swiss watch sales. Fancy shapes selling, with improvement in marquise and pear shapes. Rough market uncertain as Indian manufacturers scale down buying.

Israel: Good networking and positive vibe during International Diamond Week. Steady trading among local dealers and some Indian buyers. Focus on niche segments such as large fancy shapes and fancy colors. Concerns about payment from Far East customers. Large-stone rough demand stable at auctions.

India: Sluggish market in absence of China and Hong Kong-based buyers. Demand down but suppliers maintaining steady prices for now. Manufacturers concerned polished prices will soften as coronavirus’s impact on business spreads. Inventory levels rising again due to China slowdown and strong rough buying in Dec.-Jan. Purchase of commercial-quality rough cautious at start of Alrosa Alliance sale.

Hong Kong: Short-term outlook pessimistic as coronavirus crisis continues. Many businesses closed or working fewer hours and with minimal staff. Very little polished trading in absence of Chinese demand and international buyers. Some orders from other Asian markets. Retailers under pressure as sales plummet but labor and rental costs remain.

China slowdown affecting global sentiment. Diamond markets quiet as coronavirus reduces value across the supply chain. Chinese and Hong Kong jewelers remain closed and lack of Chinese tourism likely to impact European and US luxury brands. US retailers consider short-term alternatives to Chinese suppliers. Diamantaires concerned about delayed payments from Hong Kong buyers. Reduced demand leading to polished inventory buildup, since manufacturers bought large volume of rough in Dec./Jan. Miners with inflated inventory cautious about 2020 production. Small De Beers sight expected next week. De Beers 2019 revenue -24% to $4.6B, earnings -87% to $45M, average price -20% to $137/ct.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Steady US polished demand supporting global trade as China weakens. New York dealers buying to fill orders rather than for inventory. Strong emphasis on memo. Shortages reinforcing prices of better-quality goods (RapSpec A3+), while suppliers are still holding large volume of unwanted diamonds. Following Valentine’s Day, jewelry retail expected to be seasonally slow until start of summer wedding period.

Belgium: Dealers cautious amid slowdown in China and Hong Kong. Buyers pushing for higher discounts, but suppliers to US are holding prices steady. Rough trading quiet and premiums softening on the secondary market ahead of next week’s De Beers sight. Peter Meeus submits new bid for HRD Antwerp, while AWDC approves CEO’s turnaround plan.

Israel: Activity stable as dealers avoid travel and focus on local trading. Difference in sentiment between suppliers to US and those with Far East focus. Solid interest in round, 1 to 7 ct., D-M, SI3-I1 diamonds. Slowdown in 0.30 to 1.49 ct., D-H, IF-VS goods. Concern that Indian suppliers will lower prices and flood market with polished amid slump in Chinese-Hong Kong orders.

India: Sentiment low owing to tight liquidity and slow polished demand. Buyers seeking discounts and looking for desperate sellers. Dealers maintaining weak 1H outlook, with concerns Chinese jewelers will return large volume of unsold goods. US supporting the market and showing steady interest in 1 ct., G-J, VS2-I1 diamonds. IIJS Signature fair signals shift to lighter-weight wedding jewelry due to high gold prices and weak economy.

Hong Kong: Polished trading drastically reduced. Many companies working with minimal staff amid coronavirus epidemic. Businesses seeking ways to save money; many mulling layoffs. International diamantaires reconsidering their presence in the city. Some Chinese jewelry manufacturers have returned to work but haven’t yet resumed production, since orders are on hold. Retail market sluggish and reeling from double blow of the virus and political protests that hurt sales last year.

Rapaport
27 februára 2020 10:58

Diamond market weak as coronavirus shuts down China and weighs on global economy. Financial markets slump with Dow -7% (Feb. 21-27). Gold rallies +4% to $1,653 per ounce (Feb. 1-27). Indian market facing severe liquidity crunch as sales to China stop. Luxury retailers reviewing Hong Kong presence after 2019 protests and ongoing epidemic lead to drop in sales. De Beers gives sightholders added flexibility on Chinese goods, with projections for small Feb. sight. Rio Tinto diamond unit 2019 revenue -11% to $619M, loss of $21M vs. profit of $118M the previous year. India Jan. polished exports -6% to $1.7B, rough imports -11% to $763M.

Fancies: Ovals are strongest shape, driven by US fashion jewelry demand. Emeralds above 2.50 ct., D-G, VVS2-VS2 also selling well. Pears slightly slower due to sluggish Hong Kong market. Princess and Marquise continue to struggle. Well-shaped and fine-cut fancies have become a profitable niche with good demand and strong prices, especially Ovals, Emeralds and Pears. Fancies with classic and long ratios trending in fashion segment. Shortage of top-make fancies 1.50 ct. and larger in all categories except D color. US sustaining market for commercial-quality, medium-priced fancies. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: US demand supporting global market as dealers seek ways to compensate for decline in China. Dealers concerned that too much excess inventory is being sent to the US amid plummeting stock markets. Steady orders of 1 ct., G-J, VS2-I1 diamonds for engagement rings. Bridal picking up ahead of summer wedding season.

Belgium: Market conditions deteriorating as coronavirus impacts demand. Virus’s recent spread to Italy and other European countries has added to uncertainty. Dealers reducing purchases and assessing inventory requirements. Antwerp Rough Diamond Days, scheduled for this week, postponed due to virus. AWDC delays sale of HRD Antwerp and tasks new CEO with implementing turnaround plan.

Israel: Sentiment weak amid worries that India and Hong Kong dealers will reduce prices to raise liquidity. Suppliers focused on US as China and Hong Kong shut down. Steady demand and firm prices for round, 1.50 to 5.99 ct., G-J, I1 diamonds and oval and pear, 1.50 to 5.99 ct., G-J, VS2-SI2 goods. Rough dealers struggling to sell boxes during De Beers sight. Solid interest at large-stone rough auctions.

India: Polished trading slow due to lack of Asian buyers and reduced liquidity. US market stable, but buyers seeking discounts. Diamonds with lower color and clarity moving better than higher-end items. Manufacturers maintaining low production since polished demand is down. Diamantaires with Hong Kong offices operating with reduced teams.

Hong Kong: Wholesale very quiet due to lack of orders from China during coronavirus epidemic. Sporadic orders from other countries in the region, such as Japan, Singapore, Thailand and Malaysia, with 0.20 to 0.50 ct., D-F, VVS-SI1 selling. China retail stores remain closed; consumers in big cities making some purchases online. Jewelry manufacturers starting to resume operations at reduced capacity. Hong Kong retailers trying to renegotiate rental rates.