Global Diamond Demand

RAPAPORT…

Antwerp

•    2.5 to 4.5 carats in H-I, VS+ are moving well.
•    In general, everything is moving, due to either shortage of goods or speculation.
•    There is some concern that a bottleneck could occur in September because people will need to buy rough, but the polished sales aren’t following.
Polished
•    4-grainers in H-I, VVS are moving well.

China
•    The market in China moved into its traditionally slower, but still stable, period in June.
•    Demand is stable for rounds in 0.15 to 0.69 carats, G+, VS and in 0.15 to 0.69 carats, I-J, VVS.
•    Demand remains good for rounds in 0.30 to 1.10 carats, D-H, VS, Gemological Institute of America (GIA)–certified diamonds in triple EX, double EX and EX cut grade with none to faint fluorescence. SI1 goods have a smaller but decent market share. The asking price for triple EX goods continues to increase.

Hong Kong
•    Rounds in D-F in SI in all sizes are in very strong demand. However, Asian markets still won’t accept black imperfections.
•    Demand is very strong for G-K in VVS clarities from 50-pointers and larger, but supply is extremely low. Sizes larger than 1 carat in SI in this color range are increasing in popularity.
•    Demand is good for K-M colors in 1-carat sizes and larger.
•    5- to 10-carat sizes in VVS are moving well in K colors. Demand is still low, with sporadic bursts depending on customer demand. Fancy cuts, especially cushions and pears in these colors, are more popular than rounds.
•     Demand for DIF remains constant, as some consumers look to these stones as investments and choose the size based on how much they have to invest.

India
•    Demand is good in the domestic market for stones above 0.50 carats in G-J colors.
•    Little demand is being seen domestically in D-E, but demand is growing for F color.
•    VVS and VS have been showing good demand in the domestic market and now the same is being seen in the China and Hong Kong markets as well. 
•    For the export market, demand is very good for 30- to 90-pointers with certificates.
•    Colors are not doing too well in the international market, except for the first shade and 1-caraters, for which demand is good up to L color.
•    Demand from the U.S. market is still sluggish, but the Far East is showing interest in procuring polished from India.

Israel
•    Good demand exists for 0.50- to 1.50-carat, H-K, SI stones, which moved well at JCK.
•    Goods up to 0.70 carats suitable for the jewelry market also enjoy good demand, with some short supply for D-E color.
•    Demand for 2-carat, D-H, SI1+ stones is starting to improve.
•    L-M colors in white VS2+ clarities are moving to the Hong Kong market.
•    Demand is sporadic, but generally quiet, for large-size stones.
•    Among fancy shapes, princess cuts are strong.

Russia
•    ALROSA sold $2.17 billion worth of rough in 2008, down from $2.79 billion in 2007, according to the company’s final financial statement for the year, which was approved at its shareholders meeting June 20. In other final results, the company sold $157 million of polished diamonds, reported net profit of $50 million and spent $290 million on mining construction work.
•    Russia exported 135,597 carats of rough diamonds worth $724,000 in the first quarter of 2009. This amount is almost 50 times less than in the first quarter of 2008, according to a Ministry of Finance report.
•    Russia imported 45,397 carats of rough diamonds, worth $29.5 million, in the first quarter of 2009.

U.S. Retail
•    Round is still the top-selling shape, followed by princess.
•    The most popular carat weight is ¾, followed closely by 1-carat stones. Light carats, such as 0.80 and 0.90, also continue to move.
•    SI1 is the top-selling clarity.
•    H is the preferred color, followed by I.
•    14- and 18-karat white gold outsells platinum in most markets, and palladium is on the rise.
•    The average price for an engagement ring, including stone and setting, is about $5,000.
U.S. Wholesale
•    3⁄4- to 11⁄2 -carat diamonds are moving moderately, driven by the bridal market.
•    2-carat-and-larger diamonds are being discounted due to weaker demand.
•    SI2 to VS2 clarities are the best sellers.
•    Demand for VVS diamonds is mostly quiet.
•    Clients are buying F to H colors.
•    Rounds are the most popular shape, with cushions and radiants coming in second.
•    Bread-and-butter princess diamonds remain hard to find, despite the fact that cutting has resumed.