Global Diamond Demand

RAPAPORT…
Antwerp


• 5 carats of gem quality sold for $75,000 to $80,000 per carat, which some believe indicates speculation.
• The recent change to issuing weekly fancy prices list instead of monthly lists improves the market for selling better-quality stones.
• 90 points to 2 carat, VS2 to SI, certificate stones are being sold at up to -3 percent.
• Too many 30 to 90 points, VS2-SI and G down are on the market so sales are slow.
• 10- to 25-point goods in cleanish VS/F-I are moving okay.
• 2.5 carats+ in D-F/VVS-VS in pear, heart, emerald and cushion are moving very well.

China

• The majority of demand is focused on VS+, G-I, 1/10 -1/3 and VVS, G-H, 40 to 50 points, prices being stable compared with those of previous months.
• New Year promotions for carat stones in the retail section created good demand for bigger goods and, consequently, a shortage in supply.

Hong Kong

• 5-carat brilliants in a wide range of colors and clarities are in extremely hot demand. Fancies are also sought but are not as popular as rounds. It is difficult to find buyers for larger than 5 carats.
• Demand remains strong for 3 carats, with demand for 2 carats improving and demand for 1 carat steady.
• 0.50 and larger dossiers are in demand; smaller sizes are dull.
• 0.10 to 0.20 carats in H-J colors/VVS-SI enjoy steady demand.
India
• Trading activity has been good for domestic sales, but the export market is relatively weak, with movement only in certain categories of goods.
• Prices are stable overall, with shortages seen for better-quality goods in sizes across the board.
• -2 goods and melees are moving very well.
• 0.80 to 0.99 carats are still hot, with shortages for VS+, I+ goods.
• Caraters are still going strong, with shortages for premium and high-quality goods.
• Demand for 2 carats is showing slight improvement, but plenty of goods are available, especially in SI and lower quality.
• 3 carats are steady and discounts are strong with more goods in the market.
• 4 carats are very hard to find and demand is steady.
• Shortages exist for princesses, pears and marquises in 1.50 carats+ in VS+, I+.
• Demand is weak for emeralds and Asschers and goods under 2 carats are readily available in Indian markets.
• Large rounds and fancies above 5 carats are in good demand and supply is extremely limited so asking prices are very high.

Israel

• There is moderate polished trading activity and soft rough trading.
• Rounds are strong in all sizes, clarity and colors.
• Hearts, pears and marquise cuts in VS-VVS are all in solid demand.
• Demand is strong for VS-VVS in all sizes.
• Princess cuts are in fair demand.
• There is soft demand for radiants, cushions and emeralds up to 1 carat.
• Demand has increased for radiants in better-quality goods and princesses 1.5 carats+.
• There is fair demand for squares in 1 carat+.
• Shortages exist in top-quality rough.
• Cushions in 2.5 carats+ are in very strong demand.

Japan

• Reflecting the stronger dollar and euro, foreigners are buying loose stones aggressively, from pointers to large stones of 2-, 3-, 5- and 10-caraters, I-K colors, high clarity, good makes.
• Domestic prices have become comparable to overseas prices. Replenishing inventories is becoming difficult.
• 4/4 grainers continue to be weak.
• Pointers are steady.
• The market for melees and smalls is one of extremes, with strong demand for high-end, high-quality stones and low- price-point stones. There is little interest in midrange qualities.

Russia

• ALROSA sold $2.865 billion of rough in 2006, exceeding its sales target by 1.23 percent. Export sales of rough topped 55 percent. ALROSA’s total sales, including polished diamonds, were more than $3 billion in 2006.
• Kristall Smolensk sold $358.2 million worth of polished diamonds in 2006, 3.2 percent more year-on-year from $347 million in 2005. Export sales were at 97 percent, compared to 99 percent in recent years.

U.S. Retail

• Yellow gold continues its comeback.
• Textured gold is becoming more popular.
• Pricing pressure increases, driven by competition and fragmentation in the marketplace.
• White diamonds are still strongest.
• Colored diamonds are more popular for big rings.

U.S. Wholesale

• Trading activity continues to be uneven.
• Polished prices are mixed.
• Rough prices are strong.
• Bigger and better goods are still in demand.
• Goods below 1 carat are slower.
• Fancies are even.
• Fancies 4 carats and up in fine makes are still in short supply.
• Princesses hold steady.
• Pears and ovals see improved demand.
• Emeralds and radiants are doing well.
• Asschers have leveled off.
• Cushions are mixed.
• Hearts are relatively weak.
• Fancy colors remain healthy.