Polished trading improving. Buyers looking for bargains in Mumbai as weak currency and tighter bank lending put pressure on Indian dealers. Surat factories closing early for Diwali, with large inventories of melee and 30-pointers. Rough trading slow. Alrosa sales volume -11% to 6.7M cts., production +2% to 10.5M cts. De Beers sales volume -28% to 5M cts., production -5% to 8.7M cts.
Fancies: Far East demand improving as Chinese consumers seek fancy shapes at better prices. US and European demand mixed. Ovals and Cushions are best sellers, followed by Emeralds and Pears. Radiants improving. Marquises and Princesses weak. Oversizes selling well. Steady demand for fine-quality 6 to 10 ct. Ovals, Pears and Emeralds, with prices firming for 3 to 5 ct. due to shortages. Off-make, poorly cut fancies illiquid and hard to sell, even at very deep discounts.
Belgium: 1 to 2 ct., G-J, VS-SI selling well to satisfy US and European demand. Fancy shapes stable, with Ovals and Pears the best sellers. Rough market cautious as inventory levels rise before Diwali.
Israel: Market improving but there is concern that global slowdown and tight Indian liquidity will impact trading. Steady demand for 1 ct., G-H, VS-SI, RapSpec A3+ diamonds. Dealers to sell to Chinese consumers through AliExpress. Rough and polished buyers seeing opportunities in India as Surat manufacturers reduce production.
India: Stronger activity in Mumbai during India Diamond Week, with foreign buyers looking for goods before Nov. 7 Diwali break. Solid US orders for 1 ct., G-J, VS-SI diamonds. Chinese cautious and shifting to SI-I1 clarities. Small stones slow, but VVS stars and melee better. Small-scale manufacturers under pressure from currency depreciation, tighter bank lending and high rough prices. Reserved outlook for Diwali as rupee-based gold prices rise.
Hong Kong: Slight boost in trading, with stable demand for 0.50 to 1 ct., D-H, VS-SI goods. Gradual shift to lower price points, with increasing orders for SI clarities and fancy yellows. Jewellers holding large inventory and avoiding bulk purchases due to unfavorable exchange rates. Retail sector steady, despite uncertainty over trade war and weaker currency.
Source: Rapaport
