rapaport

Market Comment

May 24, 2023

News: Diamond market slow, with mixed expectations for Las Vegas shows (May 31 to June 5). US jewelry retail under spotlight as economic uncertainty is affecting sales and inventory replacement. Manufacturers struggling to reduce inventories. Sightholders expect De Beers to offer further supply flexibility in 2H due to market caution. UK bans import of Russian diamonds; G7 pledges to restrict trade in Russia-sourced goods. Petra Diamonds rough prices -13% amid weak demand at $42M May tender. Sarine 1Q revenue -26% to $11.5M, profit -76% to $800K. Blackstone buys IGI for $570M. THE RAPAPORT PRICE LIST WILL NOT BE PUBLISHED ON MAY 26 DUE TO THE JEWISH HOLIDAY OF SHAVUOT.

Fancies: Fancy-shape market slower than before but better than rounds. Elongated Ovals, Emeralds and Radiants are strongest items. 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: 

Dealers focused on preparing for upcoming Las Vegas shows. Retail jewelers selling but cautious about inventory replacement. Nice fancies moving well, with shortages developing. Improving demand for 0.30 to 0.90 cvt., D-F, IF-VVS, 3X, no-fluorescence diamonds driven by robust high end. Commercial qualities (G-I, SI2-I1) weak. Melee market slower than a month ago.

Belgium: 

Sentiment low amid concerns that prices will continue to decline. Dealer trading slow. Jewelers need goods but don’t want to commit to orders in downward-trending market. Steady demand for 1 to 3 ct. goods for engagement and bridal segment. Ovals, marquise and pears also strong. Rough trading cautious as manufacturers reduce polished production.

Israel: 

Market mood down. Suppliers to US and European retail brands performing better as high-end segment is robust. Top-quality fancy shapes in good demand and short supply; lots of less desirable stones available and sent out on memo. Many traveling to Las Vegas, hoping shows will boost dealer trading.

India: 

Slow market, with many suppliers on summer vacation. Some factories are resuming operations but keeping production very low. Manufacturers focused on reducing inventory; refraining from buying rough they cannot move. Demand down from international markets. Local retail doing OK, with jewelers placing orders.

Hong Kong: 

Seasonal quiet contributing to trading slowdown; expectation that market will improve after summer holidays. Chinese buyers looking for goods, with focus on 0.30 to 0.80 ct. and 1 ct., D-G, VS-SI, albeit at lower volumes than before. Jewelers planning promotions and are willing to discount to stimulate sales. Tourist traffic rising, but diamond-jewelry sales to Chinese luxury shoppers well below pre-pandemic levels.

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