Market Comment

News:

US delays tariff deadline to Aug. 1, adding to uncertainty as India trade deal remains unsigned. President Donald Trump threatens 30% tariffs on South Africa, 36% on Thailand and 30% on Sri Lanka. US retail demand steady; wholesale seasonally quiet. Indian diamond market under pressure, with manufacturers reducing costs, production and prices; estimates indicate that rough imports fell in June. Fancies doing better than rounds. Industry expecting stable prices at Jul. 14 De Beers sight. Titan shares -7% since Jul. 7 even though fiscal 1Q jewelry sales +18% YOY, as figure still below forecast amid gold-price surge. France upholds requirement to call lab-grown diamonds “synthetic.” David Kellie to step down as CEO of Natural Diamond Council.

Fancies:

Long fancy shapes such as Oval, Marquise and Emerald doing better than rounds in 2 ct. and larger. High-quality Marquises, long Radiants and long Cushions in short supply. Long Cushions easy to sell and trading at 20% to 25% premium over square ones. Solid US interest in elongated Ovals of good shape and quality in D-I, VS-SI categories. Oval and Pear, 0.30 to 0.49 ct., F-I, VS diamonds in demand. Ovals 5% to 10% more expensive than Pears in US market. Very well-cut fancy shapes difficult to find and commanding premiums. Fancies with bad proportions are illiquid.