News: US and Chinese demand for polished above 0.30 ct. weak and causing slowdown in 0.75 ct. and larger rough. Indian manufacturers focusing on small, low-value and synthetic goods to keep factories running. Inexpensive natural melee diamonds doing better than expected as Rapaport June melee auction sells $6.2M (93% of lots). India Prime Minister Modi gives 7.5 ct. synthetic diamond to Jill Biden. De Beers offers 1 to 2 ct. synthetic diamond engagement rings at $800-$1,500/ct., raising concerns in industry. De Beers June sales -32% to $450M following price drop in larger sizes. US Census Bureau reports May retail sales +0.3%. Low expectations for HK show. India May polished exports -18% to $1.7B, rough imports -19% to $1.2B.
Fancies: Fancy-shape market slower than before but better than rounds. Longer Ovals, Pears, Radiants and Cushions fetching higher prices than shorter stones. Goods with medium and short ratios weak. Demand for Cushions declining. 0.30 ct. doing well. Orders low for 0.70 to 1.20 ct. diamonds. VS-SI losing strength, except in 1.20 to 1.49 ct. Well-cut stones seeing supply shortages. Excellent shapes commanding premiums. Retailers offering broader product ranges as consumers seek alternative cuts. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid and difficult to sell.
United States:
Jewelry sales slow. Economic data fueling hopes of improvement: Consumer sentiment up 8% in June after inflation eased and lawmakers reached debt-ceiling deal, University of Michigan reports. Signet’s shares seeing moderate recovery but still down 10% in past two weeks. De Beers’ launch of synthetic engagement rings signals lab-grown is taking market share.
Belgium:
Trading very quiet. High-end demand supporting sector; sales to US mid-market have slumped. Rough dealers benefiting from Indian manufacturers’ rush to process small, cheap goods. De Beers’ move into lab-grown engagement rings prompting concern.
Israel:
Market cautious. Buyers highly selective amid uncertain global demand. Sales of 1 ct. diamonds down due to sluggish US bridal segment.
India:
Activity slow. Manufacturers keeping workers busy with smaller rough since polished above 0.30 carats is hard to sell. Overall production capacity at about 50%; profit margins are thin. Some movement in melee. Pears, marquises and ovals are best performers amid low demand for rounds. Domestic market bolstering sector following drop in US and China orders.
Hong Kong:
Weak Hong Kong and China demand is weighing on business. Jewellery & Gem Asia Hong Kong show not expected to offer much of a boost, as overseas buyers are absent. Steady appetite for 1 ct., D-H, VS (3X, none) diamonds in local market. Slow economy in run-up to summer vacation means jewelry manufacturers working at 50% capacity.
Market Comment
News: US and Chinese demand for polished above 0.30 ct. weak and causing slowdown in 0.75 ct. and larger rough. Indian manufacturers focusing on small, low-value and synthetic goods to keep factories running. Inexpensive natural melee diamonds doing better than expected as Rapaport June melee auction sells $6.2M (93% of lots). India Prime Minister Modi gives 7.5 ct. synthetic diamond to Jill Biden. De Beers offers 1 to 2 ct. synthetic diamond engagement rings at $800-$1,500/ct., raising concerns in industry. De Beers June sales -32% to $450M following price drop in larger sizes. US Census Bureau reports May retail sales +0.3%. Low expectations for HK show. India May polished exports -18% to $1.7B, rough imports -19% to $1.2B.
Fancies: Fancy-shape market slower than before but better than rounds. Longer Ovals, Pears, Radiants and Cushions fetching higher prices than shorter stones. Goods with medium and short ratios weak. Demand for Cushions declining. 0.30 ct. doing well. Orders low for 0.70 to 1.20 ct. diamonds. VS-SI losing strength, except in 1.20 to 1.49 ct. Well-cut stones seeing supply shortages. Excellent shapes commanding premiums. Retailers offering broader product ranges as consumers seek alternative cuts. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid and difficult to sell.
Jewelry sales slow. Economic data fueling hopes of improvement: Consumer sentiment up 8% in June after inflation eased and lawmakers reached debt-ceiling deal, University of Michigan reports. Signet’s shares seeing moderate recovery but still down 10% in past two weeks. De Beers’ launch of synthetic engagement rings signals lab-grown is taking market share.
Trading very quiet. High-end demand supporting sector; sales to US mid-market have slumped. Rough dealers benefiting from Indian manufacturers’ rush to process small, cheap goods. De Beers’ move into lab-grown engagement rings prompting concern.
Market cautious. Buyers highly selective amid uncertain global demand. Sales of 1 ct. diamonds down due to sluggish US bridal segment.
Activity slow. Manufacturers keeping workers busy with smaller rough since polished above 0.30 carats is hard to sell. Overall production capacity at about 50%; profit margins are thin. Some movement in melee. Pears, marquises and ovals are best performers amid low demand for rounds. Domestic market bolstering sector following drop in US and China orders.
Weak Hong Kong and China demand is weighing on business. Jewellery & Gem Asia Hong Kong show not expected to offer much of a boost, as overseas buyers are absent. Steady appetite for 1 ct., D-H, VS (3X, none) diamonds in local market. Slow economy in run-up to summer vacation means jewelry manufacturers working at 50% capacity.
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