Rapaport TradeWire November 7, 2019

November 07, 2019

November 7, 2019

RAPAPORT MARKET COMMENT

Sentiment improving after De Beers reduced rough prices 5%-7% at Nov. sight. Better demand for RapSpec A3+ polished, driven by US holiday orders. Chinese demand and reduced supply supporting 0.30 to 0.50 ct. D-G, IF-VS categories. Potential US-China trade deal boosts expectations for Chinese New Year. 1 ct. RAPI -0.1% in Oct.; 0.30 ct. RAPI +1.5%. Surat manufacturers on Diwali vacation and expected to maintain cautious production. Gem Diamonds sees pressure on large high-end rough, as Letšeng 3Q average price -23% to $1,417/ct. Hong Kong 3Q net polished imports -22% to $1.1B. Peter Meeus and IGI submit competing bids to acquire HRD Antwerp.

RAPNET DIAMOND INDEX (RAPI^™)

Weekly

Monthly

Y2Y

0.30 ct

0.63%

1.95%

-16.97%

0.50 ct

0.09%

0.51%

-8.95%

1.00 ct

0.25%

-0.41%

-5.36%

3.00 ct

-0.24%

-0.30%

-18.49%

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

Market Reports

United States: Steady trading, but wholesale business is weaker than last year’s holiday season...

Belgium: Ovals and pears doing well in 1 to 1.5 ct. range...

Israel: Dealers gaining confidence amid rise in US orders...

India: Cutters hoping for better profit margins after Diwali break following De Beers rough price cuts...

Hong Kong: Rising expectations over potential US-China trade deal, as dispute has significantly affected sentiment in HK/China...

15 Aug 2019 Gia Id 100 Machine Tw Banner

Episode 19: Why Bridal's Not Enough

WITH The Rapaport Diamond Podcast

The Rapaport Diamond Podcast interviewed Stephen Lussier, De Beers’ vice president, consumer and brands, who outlined key takeaways from the recent De Beers Diamond Insight Report, titled Diamonds and Love in the Modern World. Lussier stressed how the industry can capitalize on the trends in modern relationships.

Webinar: Holiday Expectations

WITH Avi Krawitz

Rapaport’s senior analyst assesses whether the recent improvement in diamond trading is sustainable. What needs to happen to ensure the market remains positive beyond the holiday season?

The webinar is now available for viewing.

UPS AND DOWNS

Lucara Aims to Change Industry With Blockchain Platform

Woman’s Diamond Ring Survives Two Major LA Fires

Bank of Botswana Cuts GDP Forecast Amid Mining Slump

Nirav Modi Attacked in Prison in Extortion Attempt: Lawyer

Trade Wire Banner 6 Nov 19 Keynote Presentations

WEEKLY NEWS

industry

De Beers Reduces Prices at November Sight

Sightholders welcome the move but would like further discounts.

Diamond Market Improves as Holidays Approach

Reduced supply of better-quality polished has helped support prices.

HRD Antwerp Receives Two Takeover Bids

IGI and Peter Meeus in running to buy the Belgian lab.

De Beers Lowers Global Diamond-Jewelry Estimate

Rough production also less than previously thought.

Labs Identify Fingerprint for Argyle Pinks

Diamonds from Rio Tinto’s Australian mine exhibit blue fluorescence under ultraviolet light.

retail

Tiffany Wants Higher Price From LVMH

Jeweler says $14.5 billion offer undervalues the company.

Borsheims Selling Luxury Jewelry Experiences

Customers can purchase Swiss watchmaking trips or tours of diamond mines.

Pandora Slashes Sales Forecast

Company predicts drop of up to 9% for the full year.

Hong Kong Sales Drop Significantly

Jewelry purchases down 41% in September.

mining

Lucara Posts Loss in Third Quarter

Result was mainly due to increased operating expenses.

Gem Diamonds Lowers Full-Year Outlook

Production at Letšeng shifts to lower-grade portions of the mine.

Angola Diamond Sales Rise

Revenue up 12% to $295 million.

Mountain Province Slides to Net Loss

Operations impacted by bad weather and weak market.

general

Christie’s to Sell $7.5M Blue Diamond Ring

3.24-carat Moussaieff piece joins jadeite bead and spinel necklace as top lots.

Couples Prefer Customization over Size

Average cost of engagement ring rises 4% to $5,900, according to The Knot.

Sarine Adapts Grading to Reach Tiffany Standards

Technology will be upgraded from its current parameters which are based on GIA guidelines for color and clarity.

KGK Opens Angola Cutting Factory

Government aims to boost local manufacturing.

Yellow Prices Fall in Third Quarter

Weaker demand for the category drove overall fancy color index down 0.5%, FCRF says.

FINANCE

Diamond Industry Stock Report

Global retail stocks rebounded as the US and China took strides toward a trade deal, and the US government implemented its most recent federal tax cut. Macy’s (+6%), Signet (+5%), Chow Sang Sang (+7%), Luk Fook (7%) and LVMH (+5%) all rose. Miners had a difficult week after reporting disappointing results in the third-quarter, a tough period for the rough market. Shares in Lucara (-16%), Mountain Province (-5%) and Firestone (-5%) all slid.