War shakes global markets. Polished trading steady. Buyers more cautious due to concerns about rising prices. Rough robust during sight week. Shortages on secondary market driving “bren” premiums. De Beers 2021 revenue +65% to $5.6B, underlying earnings of $345M vs. loss of $102M in 2020, price index +11%. Prices for smaller rough +5% at Feb. sight. Alrosa prices estimated +10% at Feb. sale. Rio Tinto 2021 diamond revenue +9% to $501M, earnings of $99M vs. $9M previous year. Petra Diamonds 1H sales +49% to $265M, profit -26% to $49M. Industry mourns passing of Dorothée Gizenga, longtime advocate for artisanal miners.
Fancies: Market robust. Good demand across all sizes. 1.20 to 3.99 ct., F-J, VS-SI is hottest category and seeing scarcities. 0.30 to 0.99 ct. improving in VS and better clarities. Fancies below 0.30 ct. showing significant gains since Diwali. Supply shortages supporting prices. Retailers offering broader product ranges as consumers seek alternative shapes. Growing interest in fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Oversizes trading at higher prices than usual. Excellent shapes commanding premiums. Steady demand in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.
United States: Trade optimistic but more cautious than before. Slight slowdown in 3 ct. and larger diamonds, which were hot in previous weeks. 1 to 1.25 ct., G-J, VS-I1 goods selling well. Melee still strong and difficult to source. Dealers struggling to buy due to rising prices. Retail momentum continuing, especially for high-end jewelers.
Belgium: Positive sentiment amid steady US and European orders. Good demand for 1 to 1.50 ct., G-J, VS-SI diamonds. Rough trading solid during De Beers and Alrosa sales week; secondary market seeing shortages and high premiums. Several diamantaires traveled to UAE for Dubai Multi-Commodities Centre (DMCC) conference and JGT show. Dubai upping competition with Antwerp for share of rough sector.
Israel: Bourse activity relatively quiet. Suppliers filling more orders online; focus is on US clients. Slight drop in sales due to seasonality and high prices. Dealers hesitant to purchase at current valuations but also unwilling to sell for the lower sums buyers would likely offer. Israel Diamond Exchange opens office in DMCC.
India: Mood upbeat. Stable orders from US and China as well as domestic jewelers. Improvement in VVS-SI category. Slowdown in cheap diamonds below $200 in I1 and lower clarity. Fancies moving well, especially above 1.20 ct. Strong rough demand due to scarcities in secondary market. Large manufacturers’ good liquidity and access to rough are strengthening their position.
Hong Kong: Wholesale and retail segments sluggish as Covid-19 infections continue spreading fast. No lockdown, but people encouraged not to go out. Luxury stores seeing little traffic and are sending sales staff home. Chinese market seasonally slow after Lunar New Year. Dealer trading starting to pick up but without any urgency to purchase at current prices.
