Rapaport Weekly Market Comment

Polished prices under pressure. Russian sanctions, China Covid-19 wave, US inflation, and hike in interest rates impacting demand. Polished inventory rising. Buyers lack urgency and expect further price declines. Suppliers reducing prices after 2022 surge. Melee and goods below 0.30 ct. weak. 1 ct. stable. Investment-quality diamonds waking up. Secondary rough market softening after speculative Jan.-Feb. Alrosa clients finding ways to pay for Russian goods despite sanctions. Signet Jewelers 2021 revenue +50% to $7.8B, profit of $770M; company halts trade in Russian-origin goods. Alrosa shuts US office.

Fancies: Market slowing with supply shortages supporting prices. 1.20 to 3.99 ct., F-J, VS-SI is hottest category. Oval is leading shape, followed by Emerald, Pear, Cushion and Marquise. Retailers offering broader product ranges as consumers seek alternative cuts. Growing interest in fancy-shape engagement rings. Oversizes trading at higher prices than usual. Excellent shapes commanding premiums. Chinese demand helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Trading seasonally slow in cautious market. Commercial-quality melee prices softening after previous upbeat trend. Steady demand from high-end jewelers for small collection goods in D-F colors. Memo calls driving cert trade. Very little buying for inventory. Major retailers’ sales continuing following stellar 2021 performance.

Belgium: Market losing its January-February buzz. Suppliers willing to compromise on price as demand weakens. Dealers hesitant to buy amid expectations of further declines. Large stones above 5 ct. doing well. Rough trading softening amid Russia supply concerns.

Israel: Mood changing amid geopolitical and economic headwinds. Shift in market direction fueling uncertainty. Prices down but still above February levels. Small stones below 0.30 ct. sluggish. Buyers looking for goods but unsure about prices after recent declines.

India: Sentiment weakening as global challenges dampen demand. Fewer orders for parcels of loose stones. Slowdown in D-G, IF-VS1 qualities. Steady interest in 1 ct. and larger goods in lower colors and clarities. Little movement in fancy shapes. Rough prices cooling. India hopeful about completing rupee-ruble payment deal with Russia.

Hong Kong: Covid-19 outbreak and seasonal lull reducing activity. Local luxury sales halted as government extends social distancing rules. Retailers and wholesalers maintaining low staff numbers as China border closure continues to restrict business. Some mainland demand for 0.30 to 0.70 ct., D-J, VG+ goods.