Rapaport Weekly Market Comment

Upbeat US and China retail sales driving positive sentiment. Trading limited due to supply scarcity and India Covid-19 travel restrictions. Polished shortages stimulating rough buying at firm prices. Strong cash buyers making for good market liquidity, but India experiencing some pandemic-related payment concerns. Richemont FY jewelry sales +3% to $9.1B. Christie’s HK sells $76.8M (82% by lot), including cushion-cut, 15.81 ct., fancy vivid purplish-pink, IF diamond ring going for $29.3M ($1.9M/ct.). Belgium Apr. polished exports +330% to $566M, rough imports +643% to $933M. Sarine partners with Constell Group on technology solutions for lab-grown sector.

Fancies: Market robust. Upturn in prices for 0.30 to 0.99 ct. goods of various shapes. Oversizes trading at higher prices than usual. Shortages of 1.25 to 3.99 ct., F-J, VVS2-SI2 fancies. Retailers offering wider product ranges as consumers seek alternative shapes at more affordable prices than rounds. Dealers seeing increased sales of fancy-shape engagement rings. Rise in orders for Ovals, Pears, Emeralds, Princesses, long Radiants and Marquises. Excellent cuts in demand and selling at premiums. Steady orders in China helping the market. Off-make, poorly cut fancies illiquid and difficult to sell.

United States: Stable market as jewelers continue to replenish inventory. Good demand for 1 ct., D-H, SI2 category as well as for 3 ct., G-H, VVS-VS. Jewelry manufacturers ordering small stones for micro-pavé settings in D-G, VVS-VS range. Old mine and European cuts selling well as consumers seek unique pieces with stories. Focus on bridal ahead of summer wedding season.

Belgium: Positive sentiment amid steady US and Chinese orders and improving European demand. Shortages supporting the market. Emphasis on online selling as Covid-19 travel constraints lead to absence of foreign buyers. 0.30 ct., 0.50 ct., and 0.70 to 2 ct., G-H, VVS-VS are strong sellers. Rough market robust after Alrosa sale.

Israel: Bourse returning to normal after two-week escalation of Arab-Israeli conflict kept dealers away. Government to lift all Covid-19 restrictions on June 1 except for travel from countries with high infection rates. Traders mainly filling orders from US and China. Large cash purchases injecting liquidity into the market. Good demand for dossiers, reversing previous downtrend.

India: Trading steady despite ongoing coronavirus measures in many parts of the country. Dealers concentrating on exports. 1 ct. and 1.50 ct., D-H, SI goods moving well. Production levels steady despite worker absences due to pandemic. Polished shortages stimulating rough buying.

Hong Kong: Diamond activity improving. Pandemic appears under control, but social distancing rules still apply. Solid interest in 1 ct., D-M, VS2-SI2. Dealers optimistic as local retail performs better than in previous years and Chinese jewelers report upbeat spring sales. Summer promotions underway.