Market Comment

March 2, 2023

News: Hong Kong shows open to busy traffic as Chinese buyers attend first major trade events since Covid-19 restrictions. Steady demand for small polished; 0.30 ct. RAPI +3.5% in Feb., 1 ct. -0.1%. Some manufacturers offering higher discounts to offload old inventory, planning to ramp up production in anticipation of 2H market improvement. Rough prices rising at tenders. Sarine 2022 sales -5% to $59M, profit -47% to $9M. Rio Tinto approves $40M Diavik mine extension to 2026. Russian diamonds facing further scrutiny as G7 explores sanctions. US considering traceability regulations to prevent imports of “substantially transformed” Russian diamonds polished in other centers.

Fancies: Fashion driving demand for elongated Ovals, Emeralds and Radiants. Goods with medium and short ratios are weak and declining in value. Slow market for 0.30 to 1.20 ct. diamonds. 1.25 ct. and larger, F-J, VS-SI categories stable. Supply shortages of well-cut fancies supporting prices. Oval is leading shape, followed by Radiant, Emerald, Pear, Cushion and Marquise. Retailers offering broader product ranges as consumers seek alternative cuts. Excellent shapes commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: 

Steady memo calls as economic uncertainty keeps jewelers cautious about owning inventory. Some larger dealers see buying opportunities as suppliers offer deeper discounts for bulk orders. Fancies outperforming rounds. Elongated ovals hot. Stable demand for 1 to 2 ct., G-K, SI-I2 goods, with memo sell-through rates growing. Bridal maintaining positive momentum despite end of traditional engagement season.


Prolonged quiet in market raising concerns. Hong Kong show expected to stimulate Chinese orders. Inventory levels high, but some scarcities in popular items. 1 to 2 ct., G-J, VS-SI, 3X diamonds improving. Rough trading steady at firm prices, squeezing profit margins.


Polished trading slow. Very little domestic dealer activity. Many traveled to Hong Kong fairs hoping to tap into pent-up Chinese demand. Slight lull in US orders. Goods below 0.50 ct. steady; 0.70 ct. and larger weak. Registration open for various events taking place in bourse at end of March (diamondweekisrael.com).


Trading conditions stable. Chinese recovery supporting market for 0.30 to 2 ct., D-K, IF-I1, 3X (no fluorescence) diamonds. Dealers attending Hong Kong shows, anticipating strong business as mainland buyers return. US sales still sluggish amid low consumer sentiment. Surat polished production below capacity as rough prices remain high and profit margins thin. Domestic jewelry sector steady.

Hong Kong: 

Robust traffic at jewelry fairs. Border reopening has enabled mainland companies to attend. Show floors busy, but space smaller than before Covid-19. Exhibitors expect good sales as visitors release pent-up demand. Stock market rallying following strong Chinese economic data.