Market Comment

News: Rounds doing well, with excellent demand for 0.08 to 0.14 ct. goods. Decent seasonal sales of heart shapes. OFAC determines that 1 ct. and larger Russian-source diamonds even if cut outside of Russia cannot be imported into the US after Mar. 1. Trade urged to support Rapaport US Diamond Protocol at rapaport.com/sanctions. De Beers 4Q production -3% YOY to 7.9M cts., sales -63% to 2.7M cts. India Jan. rough imports +43% YOY to $1.2B following Nov. and Dec. declines; Jan. polished exports -20% to $1.2B. Botswana allocates $65M to buy 24% of HB Antwerp. Kering reports double-digit 4Q sales growth at jewelers Boucheron, Pomellato, DoDo and Qeelin.

Fancies: Large inventories of Ovals and Pears due to slow sales and the imbalance between supply and demand after Indian manufacturers shifted from rounds to fancies last year. Sellers flexible on prices. Weakest size is 0.50 to 0.70 ct. Sales of Hearts, Princesses and square Cushions low. Longer Ovals, Pears, Radiants and Cushions bringing higher prices. Goods with medium and short ratios harder to sell. Supply shortages supporting prices for Marquises. Well-cut stones proving difficult to find and 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.