Market Comment

News: Sentiment weak amid retail slowdown. Traders and manufacturers losing money on inventory. Indian factories maintaining low production. Dealers see opportunity for cheap deals but nervous about buying in downward market. De Beers lowers prices of 0.75 ct. and larger, lower-quality rough by 5%-15% at July sight. Industry fears ripple effect on polished prices. High end supporting demand for exceptional stones and beautiful fancy shapes. US inflation slows to 3% in June. Chow Tai Fook 1Q sales +29% as Chinese tourists return to Hong Kong. Lucapa names Nick Selby interim CEO.

Fancies: Fancy-shape market slower than before but better than rounds. Longer Ovals, Pears, Radiants and Cushions fetching higher prices than shorter stones. Goods with medium and short ratios weak. Marquises improving. 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.