What is the current state of the diamond market? Polished market improving, with suppliers selling at lower prices to generate liquidity. Rough trading cautious as high rough prices and weak polished continue to squeeze midstream profits. Shortages of top-make goods due to reduced manufacturing, but large inventory of leftover lower-quality diamonds.
Chinese government reports retail sales +9% during 7-day Lunar New Year holiday.
High-end luxury robust as Boucheron owner Kering sees strong growth in US and Asia. NRF (National Retail federation) expects jewelry to top list of Valentine’s Day gifts.
Alrosa January sales -44% to $282M.
Belgium January polished exports -4% to $777M, rough imports -33% to $727M.
Fancies
Fancy-shape market stable, driven by US and European demand for fashion jewelry. Supply shortage supporting prices for Pears. Radiants improving. Marquises and Princesses weak. Excellent-cut Ovals, Pears and Emeralds doing well, with steady demand 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
Polished trading quiet for February. A lot of calls for short-term memo, but fewer sales. Buyers are looking for deals and are able to push suppliers’ prices lower. Steady demand for 1 ct., G-J, VS-SI goods. Some shortages in top-make diamonds. Strong online jewelry promotions for Valentine’s Day.
Belgium
Mixed outlook for the market, with suppliers to the Far East doing well before the Hong Kong show. US buyers holding back. Solid demand for 0.30 to 1 ct., G-J, VS-SI (3X, no-fluorescence) diamonds. Fewer fresh goods becoming available.
Rough trading cautious, with De Beers and Alrosa products selling at lower premiums on the secondary market.
Israel
Sentiment improving. Dealers concentrating on the US while Far East returns from Chinese New Year break
Good orders for 1 ct., G-J, VS-SI diamonds. 0.30 to 0.50 ct. and 0.70 ct. selling after recent price cuts
Rough trading stable, with steady interest in specials (above 10.8 ct.).
India
Dealers preparing for Hong Kong show, stimulating better activity in Bharat Diamond Bourse. Overseas buyers interested in 0.30 to 2 ct., H-K, VS2-I1 stones. Little buzz around IIJS Signature fair, but steady gold jewelry market for wedding season. Liquidity concerns amid bankruptcy rumors of small-scale manufacturers. Polished production levels remain restrained.
Hong Kong
Polished trading sluggish as dealers slowly return from Chinese New Year vacation. Activity expected to pick up in next two weeks ahead of Hong Kong show, which starts Feb. 28. Solid demand for 1 ct., D-I, VS-SI goods (3X, no-fluorescence). Retail sales good during Lunar festival and for Valentine’s Day. Stable Chinese tourist traffic during the season.
