Market Comment

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.