Global Diamond Demand

RAPAPORT…

Antwerp

•     1 carat up: K-P colors are in strong demand.

•     It appears that since September 2008, the Chinese, who are traditionally attached to VVS, have begun to opt for a quality downgrade to VS-SI stones.

China

•     The wholesale market has improved due to the upcoming Chinese New Year sales season.

•     Most in-demand are rounds in 0.15- to 0.69-carat G+, VS and in 0.15- to 0.69-carat I-J, VVS.

•     The demand for SI goods has increased for low-budget items.

Hong Kong

•     The market is demanding lower price points, especially in VS-SI clarities from 2 carats and smaller.

•     Demand remains steady for 1 carat to 50-pointers in VVS clarities in G-I colors, but supply is short. 

•     1/10 to 1/5 in H-I, VVS-VS are still moving well in the China market.

•     Fluorescent stones are starting to move if offered at good discounts. Some buyers prefer these to nonfluorescent stones in order to meet lower budgets.

India

•     Demand from the U.S. is negligible, but the Far East, Middle East and Commonwealth of Independent States (CIS) countries are showing a gradual rise in demand.

•     There’s been a sharp fall in demand for stones larger than 5 carats.

•     Export of cut and polished diamonds to the U.S. totaled  $506.96 million for April through November 2008.

•     Import of rough diamonds from the U.S. totaled $599.61 million for April through November 2008.

Israel

•     Christmas sales were disappointing and significantly down from 2007.

•     There were some cancellations for the Macau show as diamantaires look to cut expenses.

•     The market for VS goods is showing movement, while the VVS market is very slow.

•     SI and VS goods in H-K colors are trading better than other goods.

•     Better-quality VVS stones of D-F colors and large stones of 3 carats-plus are still not selling.

Japan

•     Prices of diamonds have dropped across the board, from 30-pointers to large stones.

•     F-G color, VS and better quality, in well-made stones, are down by 30 to 50 percent compared with three months ago.

•     Demand has not improved for low-quality, poorly made stones.

•     Melees and stars of high color in well-made stones remain high in price.

•     Demand for yellow stones and fancy shapes continues to be weak.

Russia

•     Russia exported 8.5 million carats of rough worth $673.8 million in the third quarter of 2008, which is 10 pecent more than in the second quarter.

•     The biggest buyer of the Russian rough was Belgium, with 4.4 million carats.

•     The U.S. imported 64,000 carats, compared with none in the second quarter.

•     Russia imported 161.8 million carats of rough worth $18.2 million in the third quarter.

U.S.
Retail

•     Holiday sales were sluggish at best, with some retailers falling as far as 25 percent behind 2007 figures.

•     The average price for a white diamond setting and stone is $7,600.

•     Average size is 2 carats, average clarity is VS1 to SI1 and average color is F through H.

•     Favorite metal is 18-karat white gold, which is slightly edging out platinum in holiday engagement sales. There is some interest in yellow gold, and some stores are getting inquiries about titanium and palladium, but no significant sales.

U.S.
Wholesale

•     ½ to 1¼ carats are the best sellers right now, with goods larger than 3 carats particularly slow to move.

•     Promotional-quality, noncertified SI2 and lower clarities are in demand.

•     Buyers are gravitating toward diamonds priced between $600 and $1,300 per carat.

•     Rounds continue to dominate, with cushions and radiants coming in second.

•     Champagne and cognac diamonds from ½ to 2 carats are also selling.