Rapaport Market Report

Follow @rapaport

English

English

Call Us: 1-702-893-9400

The Most Precious Resource for Your Diamond Business

Home

Why RapNet?

Products & Services

About

Contact

Home

Rapaport Market Report

Big Stone Boom Continues; Rough Markets Under Pressure

May 17, 2013 12:00 PM

Facebook

Twitter

Rough markets under pressure with some boxes selling at about 5% discounts following De Beers 4% price increase at last week's $600M sight. Polished trading very slow as Chinese and Indian consumers and retailers buying gold instead of diamonds. Big stone boom continues. Christie’s Geneva sells $102.1M (86% by lot) with Pear Shape, 101.73 ct., D, FL diamond sold to Harry Winston for ‎‎$26.7M ($254K/ct.). Sotheby’s Geneva sells $78.2M (87% by lot) with Cushion, 27.90 ct., D, IF diamond ring selling for $4.4M ($156K/ct.). Belgium’s April polished exports +23% to $1.2B, rough imports +38% to $1.4B. Swatch chairwoman Nayla Hayek appointed CEO of Harry Winston.

Fancies: Fancy markets OK but not enjoying significant Far East demand as rounds. ‎Lower fancy shape price points attracting price sensitive buyers. Strong demand for under the carat Princess cuts with Pears and Ovals catching up. Cushions relatively weak but doing better as ‎oversupply ‎eases. Marquise weak. ‎Improving demand for fancies at attractive price points encouraging ‎U.S. buyers. Extreme price differentials between ‎excellent/fine and ‎average cut fancy shapes.

Global Markets

United States: Wholesale trading in New York slowed as many businesses closed during the two-day Shavuot holiday. Dealers note there is steady polished demand as they are focused on supplying bridal goods ahead of the summer wedding season. Similarly, engagement and bridal lines continue to uphold the retail jewelry market. Consumer confidence has improved in recent weeks supported by relatively positive U.S. economic data and rallying stock markets. Dealers are hoping the improved sentiment will be enough to influence strong trading at the upcoming Vegas shows.

Belgium: Activity in Antwerp has slowed but suppliers note that May is generally a quiet month for the trade. Rough trading quieted significantly since last week’s De Beers sight with dealers and manufacturers frustrated by the price increases that took effect. Polished demand is specific with steady demand for 0.30-0.40 ct., VS-SI, triple EX goods and for 1.00-2.00 ct., VVS2-SI2, triple EX stones. There is improving demand for non-certified 0.90-2.00 ct. SI2- goods ahead of the U.S. summer wedding season.

Israel: Trading was quiet as the bourse closed for two days during the Shavuot holiday. Regardless of the holiday, trading is slow with the polished market waiting out the current pre-Vegas slump in sales. A small contingent of suppliers participated in last week’s Shanghai show but returned uninspired. Sightholders expressed concern about high rough prices and the lack of profitability in their De Beers boxes.

India: Overall activity has slowed due to the ongoing summer vacations. Polished suppliers are maintaining steady price points as they try to defend their profit margins following last week’s De Beers rough price hike. Sightholders are avoiding selling rough on the secondary market and are putting more goods into manufacturing, hoping they will achieve better polished prices when the new rough comes to the market as polished in the third quarter. Still, manufacturing remains below capacity as cutters remain cautious about the market and are facing tight liquidity. Activity in the retail sector improved with steady gold jewelry sales in the past week.

China: Wholesale diamond trading has slowed as consumers and retailers have focused on gold jewelry rather than diamonds in their purchases. Buyers are also cautious as the pace of China’s economic growth is expected to continue to slow. Demand is therefore very specific with the market concentrating on 0.30-0.40 ct., VS-SI, triple EX stones and some improvement in demand for VVS goods. Many buyers are eyeing the Vegas shows as a signal for market trends even though a relatively small contingent of Chinese buyers is expected to attend.

Hong Kong: Polished trading is stable but quiet. Buyers continue to resist attempts by suppliers to raise prices and there is no current urgency to build inventory. Wholesale trading is focused on supplying retail programs, particularly for the larger jewelry chains. There is steady demand for 0.30-0.40 ct., VVS2- diamonds and for fancy shape goods with shortages apparent in select items.