Market Comment

News: Market shaken by reports that De Beers is up for sale. Deal could lead to restructuring of diamond trade amid ongoing pressure from synthetics, sanctions and weak Chinese demand. Anglo American rejects $39B bid from BHP. De Beers reduces 2024 production plan by about 10% to 26M-29M cts. Market slower than usual for this time of year. Slow polished sales lead to sluggish rough demand ahead of De Beers sight. Short working week due to holidays. Luk Fook FY4Q retail sales +5% YOY, but China diamond sales down more than 40%. Mountain Province 1Q sales -31% YOY to $66M, average price -29% to $70/ct.

Fancies: High inventories of Ovals and Pears due to slow sales and imbalance between supply and demand after Indian manufacturers shifted from rounds to fancies last year. Cutters now returning to rounds. Sellers are flexible on prices. Downtrend continues. Sales of Hearts, Princesses and square Cushions low. Longer Ovals, Pears, Radiants and Cushions bringing higher prices. Goods with medium and short ratios harder to sell. Supply shortages supporting prices for Marquises. Well-cut stones hard to find and commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid.