Diamond market overview
The main focus in the dealer market over the past week was on the Hong Kong jewellery trade show March 4 – 8, which failed to meet dealer’s expectations. “The show was disappointing… polished remains slow,” said one dealer. Another dealer said: “If low production is maintained in the next six months in India, we will indeed see a revival of polished prices. However witnessing the volumes in rough last month, it appears they (manufacturers) have started feeding the factories again.” Meanwhile, leading chain stores Luk Fook and Chow Tai Fook Luk reported a decline in same-store-sales in Hong Kong and Macau during the Chinese lunar New Year of 25% and 29% respectively, highlighting the impact of slower growth in China. The main polishedprices index edged higher during the week, opening at 132.28 on Friday, from Monday’s opening at 131.38.
Rough market
Traders gave a mixed picture for rough over the past week. Some traders reported a slight improvement in trading activity over the past week. Others said tight liquidity continued to dampen demand for rough. In India, there were unconfirmed reports of some diamond companies facing financial difficulties. Overall, underlying sentiment in the rough market remains cautious.
Corporate and events
The world’s biggest diamond producers, increasingly threatened by cheaper manmade stones being passed off as the real thing, held a private meeting this week to create their first-ever industry association, Bloomberg reported. Representative from eight companies, led by industry giants Anglo American Plc’s De Beers unit and Russia’s Alrosa AO, got together at fellow diamond miner Rio Tinto Group’s London headquarters on Tuesday, March, the third, to discuss setting up the group, according to people familiar with the talks who declined to be identified as the discussions weren’t public, said the Bloomberg report.
