rapaport

Market Comment

September 28, 2023

News: TRADE WARNING: DIAMOND PRICES UNDER EXTREME PRESSURE AND FALLING AS INDIAN TRADE CALLS FOR VOLUNTARY HALT OF ROUGH IMPORTS. Market waiting for De Beers’ reaction. Surat manufacturers slashing production and planning extended Diwali break. China slow, with concerns about mainland economy after real-estate giant Evergrande misses bond payment. Synthetics gaining popularity in China as shoppers shift to lower price points. Lucara terminates HB supply deal. Diamond-jewelry demand flat at $86.5B in 2022, De Beers estimates. AWDC president David Gotlib resigns. Rapaport “Warning to the Trade” webinar now online via rapaport.com/warningtothetrade.

Fancies: Fancy market slowing. Prices falling, but less sharply than for rounds. Longer Ovals, Pears, Radiants and Cushions bringing higher prices than shorter stones. Goods with medium and short ratios weak. Prices of square Cushions falling amid low demand and high inventories. Marquise prices holding up following drop in supply. 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 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 hard to sell.

United States: 

Short week with Jewish traders off Monday for Yom Kippur. Memo driving the market, as jewelers don’t want to acquire stock. Nice goods in short supply. Brown, green or milky (BGM) diamonds piling up in inventories and losing value.

Belgium: 

Dealers losing money and concerned about costs. Trading very quiet amid Jewish holidays. Sluggish diamond sales at Hong Kong show, but more movement in jewelry and gemstones.

Israel: 

Bourse quiet during Jewish holiday period. Activity expected to return after Oct. 8, with hope for fourth-quarter improvement.

India: 

Sentiment low as companies return from slow Hong Kong show. Manufacturers under financial pressure and concerned about coming months. Polished production declining. Trade organizations ask factories to protect workers during two-month voluntary rough-import freeze. Synthetics impacting real-diamond demand. Domestic market steady ahead of Diwali and busy wedding season.

Hong Kong: 

Dealers unhappy after weak Jewellery & Gem World show. Trading slower than at March fair, with weak mainland demand for real diamonds. Chinese buyers were absent or attended only to check prices. Very few sales. Pearls and gemstones did better than diamonds. Chinese real-estate crisis causing negative market outlook.

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