Market Comment

News: Seasonal lull in US retail sales, with shortages supporting prices of rounds. Good demand for 1 and 2 ct., F-I, VS2-SI2, RapSpec A3+ goods; VVS weak. US dealers resisting India’s price increases. Rapaport US Diamond Protocol gaining support ahead of Mar. 1 implementation of G7 sanctions. Stable pricing expected at next week’s De Beers sight. De Beers 2023 rough sales -40% to $3.6B, with underlying loss of $314M, average price -25% to $147/ct. De Beers testing lower prices for Lightbox synthetics. Petra fiscal 1H sales -10% to $188M, loss of $11M. Lucara 2023 revenue -17% to $177M, loss of $20M; miner signs new HB deal. Chinese market preparing for Hong Kong show (Feb. 29 to Mar. 4). GIA opens Dubai lab.

Fancies: High inventories for Ovals and Pears due to slow sales and imbalance between supply and demand after Indian manufacturers shifted from rounds to fancies last year. Sellers are 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 in short supply 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.