Market Comment

News:

Upbeat IIJS ends amid positive domestic demand, and strong traffic and trading. Production cuts leading to unavailability of sought-after goods and supporting prices of rounds, with 1 ct. stable to slightly up. Overall mood improving. Rough market steady ahead of Aug. 17-21 De Beers sight. Petra plans to sell Finsch mine. Alrosa 1H sales -36% YOY to $902M, loss of $130M vs. net profit of $475M last year amid tighter sanctions, weak demand. Lucara 2Q sales -6% YOY to $41M. Brilliant Earth 2Q sales +6% YOY to $115M, net profit of $800K vs. loss of $1M last year as premiumization and metal prices boost average ticket value.

Fancies:

Long fancy shapes such as Ovals, Marquises and Emeralds doing better than rounds in 2 ct. and larger. High-quality Marquises, long Radiants and long Cushions in short supply. Marquise most expensive fancy shape. Long Cushions easy to sell and trading at 20% to 25% premium over square ones. Reports of demand for Princesses after long period of weakness; prices remain low. Antique cuts and styles hot. Solid US market for elongated Ovals of good shape and quality in D-I, VS-SI categories. Very well-cut fancy shapes difficult to find and commanding premiums. Fancies with bad proportions illiquid.