Market Comment

News: Business seasonally slow during summer vacation. India under pressure. Sightholders not expecting De Beers to lower rough prices as it is allowing refusals and larger buybacks at July 22 sight. De Beers will now stop providing individual sight sales data. De Beers exploring options to reduce rough production amid high midstream inventories, with H1 consolidated sales -21% YOY to $2B. Petra FY sales $366M. Rio Tinto Diavik 2Q production -28% YOY to 702K cts. Fiscal 1Q sales at Richemont jewelry brands +2% YOY to $4B. Consolidation continues: JBT reports number of US jewelry businesses -3.6% YOY to 22,760 in 2Q. India H1 polished exports -22% YOY to $7.7B, rough imports -7% YOY to $7.5B.

Fancies: Fancy-shape prices weaker following strong demand last year and overproduction by manufacturers. US buyers more selective about quality of SIs, rejecting black centers and short ratios. Elongated shapes still preferred. Fancies with medium and short ratios harder to sell. Supply shortages supporting prices for Marquises. Cushions slow. Very well-cut fancy shapes hard to find and commanding premiums. Oversizes trading at higher prices than usual. Off-make, poorly cut fancies illiquid.