Rapaport Weekly Market Comment
Feb 18, 2021 11:30 AM
Polished dealers optimistic. Positive momentum amid busy Valentine’s Day in US and initial reports of robust Chinese New Year season. Asian market shut for lunar festival. E-commerce driving growth; online accounting for nearly 25% of total retail in China. Kering 2020 jewelry sales weak in Europe, strong in Asia. Brands gaining market share in India, with Titan Company FY3Q sales +17% to $1.1B, profit +12% to $73M. Rough trading stable as cutters maintain production levels. Petra Diamonds FY1H revenue -8% to $178M, profit of $2.7M vs. loss of $10.2M a year earlier. India Jan. polished exports +9% to $1.8B, rough imports +65% to $1.3B.

Fancies: Stable demand for select fancy shapes as consumers seek alternative designs at more affordable prices than rounds. Dealers hoping for increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Positive momentum continues with steady wholesale and retail activity. Jewelry proving highly desirable during the pandemic. Strong engagement ring sales during Valentine’s Day. Wedding bands slightly down. Ovals and pears performing well, as are radiants and emeralds with the right proportions.

Belgium: Sentiment improving despite ongoing lockdown. Favorable supply-demand balance fueling confidence. Dossiers selling nicely. US orders supporting the market. Rough commanding a premium on the secondary market ahead of next week’s De Beers sight.

Israel: Activity starting to resume at bourse as one-month lockdown eases. Trading steady and polished exports continue to rise, diamond comptroller reports. Israel Diamond Exchange (IDE) lobbying to become a free-trade zone. Focus on elections for new IDE president and board.

India: Market stable. Good demand for 1 ct. and larger. Dossiers moving well. US buyers focusing on 0.30 to 0.70 ct., H-K diamonds; Hong Kong customers purchasing D-F colors in the same size range. Suppliers concentrating on American orders as China remains quiet during post-holiday period. Fancy shapes strong. Polished production at full capacity. Rough hard to source due to high prices. Lab-grown prices falling.

Hong Kong: Business slow with Chinese manufacturers and wholesalers still closed for lunar new year. Local Hong Kong demand weak due to lack of tourism. Trade optimistic about mainland pre-holiday sales results, as economy has recovered well from Covid-19 crisis. More than half of China’s 2021 retail revenue will come from online purchasing, eMarketer predicts.

Financial Data
Stocks
Tiffany & Co. $131.46 0.00%

Signet Jewelers $49.12 +6.41%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 10.88 +1.49%

Titan INR 1405.25 -1.42%

Richemont CHF 87.88 -0.72%

LVMH €542.90 +0.20%

Swatch Group CHF 266.50 -0.49%

Anglo American GBX 2870.00 +3.80%

Petra Diamonds GBX 1.75 +0.17%

Lucara Diamonds CAD 0.83 +2.47%

Gem Diamonds GBX 49.45 +0.71%

Metals
Gold 1,804.48 -0.04%

Silver 27.74 +0.32%

Platinum 1,268.78 +2.20%

Palladium 2,366.77 +0.59%

Currencies
Euro $1.22 +0.07%

Pound $1.42 +0.35%

Yuan($) 6.45 -0.31%

Rupee($) 72.37 -0.05%

Rapaport Weekly Market Comment
Feb 25, 2021 11:30 AM
Positive outlook for 2021 amid steady jewelry sales in US and China. Polished inventory rising. More goods going to GIA for grading. Rough market buoyant as De Beers and Alrosa raise prices again by 3% to 5%. Manufacturing profit margins may come under pressure as slower summer season approaches. De Beers 2020 revenue -27% to $3.4B, loss of $102M vs. 2019 profit of $45M. Rio Tinto 2020 diamond sales -26% to $459M, profit of $9M vs. $21M loss. US 2020 polished imports -39% to $11.8B. GIA uncovers several lab-grown and treated stones carrying natural-diamond reports and fake inscriptions. Boaz Moldawsky elected president of the Israel Diamond Exchange.

Fancies: Stable demand for select fancy shapes as consumers seek alternative designs at more affordable prices than rounds. Dealers hoping for increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Sentiment relatively upbeat in wholesale and retail markets. Polished trading seasonally slower in February than January. High end doing well, with more consumers relating to diamonds as a store of value. Engagement rings strong amid hopes that Covid-19 restrictions will end in time for summer wedding season. Large volume of goods expected to become available in the coming months.

Belgium: Rough market positive following De Beers price hikes. Polished trading steady. Dealers and manufacturers concerned about tightening profit margins. Solid demand for 0.30 to 0.60 ct., G-J, VVS-SI goods; 1 ct. also selling well in those categories.

Israel: Activity in the bourse improving after lifting of month-long lockdown. Polished inventory levels rising. Dealers maintaining polished prices following rough increases. US supporting the market as jewelers replace merchandise they sold during holiday season. Steady orders for 1 ct., G-H, VS-SI diamonds.

India: Confident outlook for rest of 2021 amid drop in Covid-19 cases and reduced restrictions. Good demand for 0.30 ct. to 0.70 ct. diamonds. Hong Kong buyers showing interest in D-G colors; US market focused on H-K. Melee moving well. 1 ct. stones strong in SI clarities. Positive reports from physical Surat Sparkle exhibition.

Hong Kong: Dealers optimistic as Chinese stores continue making orders during quiet season after lunar new year. Strong demand for GIA-graded, 1 ct., D-H, VS2-SI2, 3X diamonds. 2 ct. also moving well in G-I, SI, VG+ qualities. Local retail market slow amid tight Covid-19 rules and lack of tourist arrivals. Mainland activity better, with low-end jewelry seeing successful sales on e-commerce sites.

Financial Data
Metals
Gold $1,724.85 +0.00%

Silver $26.16 -1.54%

Platinum $1,188.51 -0.04%

Palladium $2,369.00 +0.44%

Currencies
Euro $1.20 -0.27%

Pound $1.39 -0.34%

Yuan($) 6.47 +0.06%

Rupee($) 73.36 +0.10%

Stocks
Tiffany & Co. $131.46 0.00%

Signet Jewelers $49.78 -2.39%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 10.52 -2.23%

Titan INR 1,406.90 -1.92%

Richemont CHF 87.58 -1.02%

LVMH €525.00 -1.13%

Swatch Group CHF 271.20 +0.59%

Anglo American GBX 2,841.50 +1.46%

Petra Diamonds GBX 1.70 +1.19%

Lucara Diamonds CAD 0.79 -1.25%

Gem Diamonds GBX 47.50 -3.16%

Rapaport Weekly Market Comment
Mar 4, 2021 11:30 AM
Market sentiment upbeat. Steady trading levels supported by US demand and gradual return of Chinese buyers. Retailers optimistic amid expectations that Covid-19 vaccine rollout and $1.9 trillion stimulus will boost economy. E-commerce still driving growth. Polished prices stable; 1 ct. RAPI +0.8% in Feb. Manufacturers concerned about tightening profit margins following rough-price hikes in last three months. Alrosa 4Q revenue +55% to $1.3B, profit +82% to $288M. Sarine 2020 revenue -20% to $41M. De Beers piloting project to track value by monitoring sightholders’ use of supply. Stuart Samuels elected president of Diamond Manufacturers & Importers Association of America.

Fancies: Stable demand for select fancy shapes as consumers seek alternative designs at more affordable prices than rounds. Dealers hoping for increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. High availability of fancies below 1 ct. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Steady wholesale activity. Wealthy consumers are spending and stimulus checks have boosted confidence. Bridal sales maintaining positive momentum despite end of traditional engagement season. Buyers showing interest in 1 to 2 ct., G-I, SI center stones. Demand for fancies focused on F-H, VS goods. Ovals and cushions in 3 to 7 ct. sizes moving well.

Belgium: Dealers optimistic as polished trading approaches pre-pandemic levels. Stable orders for 0.50 to 0.90 ct., I-M, IF-VS diamonds. Low clarities and VG+ cuts doing well. None-to-faint fluorescence selling at premium. Strong appetite for rough despite high prices.

Israel: Polished demand recovering; bourse activity returning. More customers purchasing for inventory. Chinese buyers back in the market after lunar new year but remaining cautious. Dealers planning business trips to US amid hopes of improvement in Covid-19 situation. High rough prices restricting profit margins.

India: Positive sentiment amid steady US and Far East orders. Rising interest in melee and in uncertified 0.30 to 0.50 ct., I-J, SI goods. Ovals, pears and emeralds improving. Dealers expecting supply shortages as miners’ high prices deter rough buyers. Manufacturing rates slowing among mid-tier and smaller cutting firms.

Hong Kong: Wholesale market quiet following end of peak season. Retailers maintaining low inventory now that holiday period is over. Dealers concerned ongoing travel restrictions will make for challenging year due to lack of overseas buyers and trade shows. Vaccine rollout fueling hopes of Chinese border reopening.

RAPAPORT... Sales momentum continued for the two largest diamond miners in February amid higher rough prices and strong retail demand in the US and China.

De Beers raked in $550 million at its second sales cycle of the year, an increase of 52% versus the equivalent trading session in 2020, it reported Wednesday. Alrosa saw more moderate growth of 7% for a total of $372 million at its February sale, with rough revenue up 5% at $361 million. Polished sales at the Russian miner jumped to $12 million from $4.1 million a year earlier.

“Midstream buyers continued to express healthy demand following better-than-expected retail sales of diamond jewelry over Christmas, Chinese New Year and Valentine’s Day, with the industry now set to enter what is traditionally a period of lower seasonal demand,” said De Beers CEO Bruce Cleaver.

The miners increased prices by around 3% to 5% at the sale, reversing some of the price cuts they implemented in the second half of 2020, market insiders said. The improvements also reflected comparisons with last year’s weak February, which was the first month in which the coronavirus heavily affected the rough market.

Both companies’ February 2021 sales were lower than in January, which is usually the largest sight of the year as the industry restocks after the US holidays. De Beers’ revenues from the first two sessions of the year jumped 33% to $1.21 billion, while sales at Alrosa gained 7% to $802 million, according to Rapaport calculations based on the companies’ announcements.

The strong February sales meant that $911 million in rough diamonds from De Beers and Alrosa entered the market for the month, compared with $704.3 million a year earlier. However, industry stock levels are no major cause for concern, the Russian company said.

“We believe the current supply and demand balance is comfortable for both miners and buyers of rough diamonds,” commented Evgeny Agureev, Alrosa’s deputy CEO.

Rapaport Weekly Market Comment
Mar 11, 2021 11:30 AM By Rapaport News
Positive trading amid US and China retail recovery. Jewelry continues to perform well as consumers seek meaningful products that retain value. US jewelers optimistic after Senate approves $1.9 trillion stimulus bill and as vaccine rollout gains momentum. Jewelry sales +6% in Feb., Mastercard reports. Large manufacturers emerging from pandemic with improved liquidity, profit and market share. Miners seeing robust rough demand ahead of 2Q seasonal slowdown. De Beers Feb. sales +52% to $550M, Alrosa +5% to $361M. Petra Diamonds sells 299.3 ct. rough to Stargems for $12.2M ($40,695/ct.). Israel Feb. rough exports +21% to $124M with boost from new UAE trade deal.

Fancies: Market for fancies improving, with some higher prices as consumers seek alternative shapes at more affordable prices than rounds. Dealers witnessing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Dealer market upbeat. Steady orders for 1 to 2 ct., D-I, VS-SI goods. Fancies also moving well, particularly emeralds and elongated ovals, cushions and radiants. Traders finding it difficult to replace sold items. Scarcities persist despite strong rough buying over last three months.

Belgium: Positive sentiment amid steady turnover. Inventory levels down. Dealers looking for goods to fill orders. 1 to 2 ct., D-F, VS-SIs are best-sellers. Stable demand for 3 ct., I-K, VVS-SI. Rough trading robust; some dealers struggling to find supply.

Israel: Market returning to regular routine as economy gradually opens after lockdown. Bourse to go back to full activity on Sunday (March 14). Dealers hoping to resume business travel in next two weeks ahead of Passover, particularly to strengthen ties with US buyers. Solid interest in 1 ct., G-H, VS-SI diamonds. Finding nice fancy shapes proving difficult.

India: Dealers and manufacturers optimistic over good demand from US and Far East buyers. Chinese retailers replenishing inventory and seeing steady orders for round, 0.30 to 1 ct., D-I, VS-SI diamonds following lunar new year. Strong market for melee and uncertified 0.20 ct. items. Surat polished production at full capacity. Manufacturers continue to shift toward lab-grown as interest in the category continues to grow. Good domestic jewelry sales.

Hong Kong: Polished trading muted but stable following peak season. Positive China retail recovery spurring optimism in wholesale sector. Steady demand for GIA-graded, 1 ct., D-I, VVS-SI, 3X diamonds. Nice SIs in short supply. Engagement rings with 0.80 to 1 ct. center stones popular locally. Colored gemstones moving well as consumers tighten budgets.

Financial Data
Metals
Gold $1,731.74 -0.03%

Silver $26.06 -0.69%

Platinum $1,208.73 -0.71%

Palladium $2,390.16 -0.19%

Currencies
Euro $1.19 +0.07%

Pound $1.38 -0.40%

Yuan($) 6.50 +0.01%

Rupee($) 72.52 -0.01%

Stocks
Tiffany & Co. $131.46 0.00%

Signet Jewelers $56.81 +0.92%

Chow Tai Fook HKD 7.63 +1.19%

Chow Sang Sang HKD 11.28 +7.63%

Titan INR 1,471.25 +0.98%

Richemont CHF 89.26 -0.11%

LVMH €553.00 +2.27%

Swatch Group CHF 284.30 -0.32%

Anglo American GBX 2,857.00 -0.99%

Petra Diamonds GBX 1.28 -18.94%

Lucara Diamonds CAD 0.73 -0.68%

Gem Diamonds GBX 52.10 0.00%

Rapaport Weekly Market Comment
Mar 18, 2021 11:30 AM By Rapaport News
Diamond market optimistic despite expected seasonal slowdown. Manufacturer liquidity getting boost from reduced inventory, faster turnover and firm prices. Concerns arising about rough market overheating amid reports that Alrosa increased prices for 1 ct. and larger by 4%-5%. Smaller De Beers sight expected next week. India Feb. rough imports flat at $1.5B, Belgium +28% to $877M. Signet Jewelers FY’21 revenue -15% to $5.2B, loss of $15M vs. $106M profit in FY’20. GIA begins disclosing post-growth treatments for synthetics. CIBJO launches guide to natural vs. lab-grown diamond terminology. World Diamond Council, RJC partner on conflict diamonds and sustainability issues.

Fancies: Market for fancies seeing upturn. Some higher prices as consumers seek alternative shapes at more affordable prices than rounds. Dealers witnessing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Sentiment positive. Dealers hoping for stability rather than continued price increases that may not be sustainable. Bridal segment buoyant and seeing steady calls for 1 ct., G-I, VS-SI, 3X goods. Old mine and old European cuts above 1.50 ct. also in strong demand. Jewelers optimistic that stimulus checks will boost consumer discretionary spending.

Belgium: Slight slowdown from previous weeks, but outlook still upbeat. European retail struggling due to Covid-19 measures and lack of tourists. Focus is on supply to US and mainland China clients. Solid dealer interest in 0.30 to 1.99 ct., G-J, VS-SI. Rough trading quieter as prices continue to firm and fewer goods become available.

Israel: Steady rise in activity since the bourse returned from lockdown. Dealers concentrating on local trading given that travel is still restricted. Online platforms also important outlet for sourcing goods. US demand driving orders; focus on 1 ct., G-J, VS-SI engagement ring center stones. Fancy shapes robust, with shortage of nice ovals and emeralds for fine jewelry.

India: Improvement in Far East market is lifting sentiment. Steady appetite for 0.30 to 0.70 ct. diamonds in D-F colors. Dossiers and 1 ct., 3X stones moving well. Good demand for pears, ovals, emeralds and radiants. Polished production close to full capacity. Profit margins tightening as rough prices continue to climb. Business likely to slow as summer season approaches.

Hong Kong: Stable wholesale trading; good movement in round, 0.30 to 0.80 ct., F-J, VS-SI and 1 ct., D-I, VVS-SI categories. Above 2 ct. slower. E-commerce supporting Chinese jewelry sector. Online consumers showing steady interest in 0.30 to 0.50 ct., G-J, SI diamonds. Hong Kong retail weak amid slight rise in Covid-19 infections and concerns of further restrictions if outbreak expands.

Rapaport Weekly Market Comment
Mar 25, 2021 11:30 AM By Rapaport News
Polished trading seasonally slow ahead of Passover and Easter holidays. Some distress over another Covid-19 wave in Europe and India. Dealers still confident for 2021. Projections show strong 2Q growth compared to 2020 lockdown period. Vaccine rollout, stimulus checks fueling optimism among US dealers and jewelers. GIA backlog causing inventory concerns. Manufacturer profit margins tightening following robust rough buying and price hikes. De Beers limiting goods during March sight. Industry mourns passing of iconic Tiffany & Co. designer Elsa Peretti and former Sterling Jewelers CEO Nate Light.

Fancies: Market for fancies seeing upturn. Some higher prices as consumers seek alternative shapes at more affordable prices than rounds. Dealers witnessing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds and Radiants above 2 ct. Cushion, Princess and Marquise improving. Buyers showing preference for elongated shapes with the right proportions. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Polished trading slowing slightly after rapid growth in February and beginning of March. Retail sales also softer following strong start to the year. Dealers and jewelers optimistic for improvement after Passover and Easter holidays as stimulus checks boost consumer spending. Good demand for 1 to 2 ct., G-I, I1-I2 diamonds. Top-quality fancy shapes in 2 to 3 ct. range selling well, with shortages supporting prices.

Belgium: Market stable but somewhat quieter than before. Concern growing over increase in Covid-19 cases and pending lockdown. Demand robust for top-make, 2 to 4 ct. diamonds. Large pears and ovals with nice makes also doing well. Rough trading slower. Fewer goods available at De Beers sight.

Israel: Business activity slackening despite lifting of pandemic restrictions. Shorter week due to public holiday for national elections. Dealers also winding down ahead of Passover next week. Demand selective. I-K color ranges improving. 0.30 to 0.50 ct., D-F, IF-VS2 softer than a month ago.

India: Mixed sentiment amid drop in trading in recent weeks. Increase in Covid-19 cases fueling caution even though business not yet affected. More polished becoming available due to rise in manufacturing since the beginning of the year. Scarcities remain in certain categories. Cutters wary after recent rough-price hikes led to reduced rough buying and slimmer profit margins.

Hong Kong: Dealer market relatively quiet. Steady demand for 0.30 to 0.80 ct., F-J, VS-SI goods with dossiers; slightly less interest in 1 ct. and larger diamonds. Local retail sluggish due to ongoing lack of tourism and slow rollout of vaccinations. Mainland China more optimistic following retail sector’s recovery from last year’s lows.