The diamond market has had a difficult start in 2023. The market continues to be weak. The 1-carat RAPI fell 2.4% in April and has fallen 5% so far this year. Economic uncertainty affected market confidence, and jeweler reduced inventory purchases. The US consumer confidence index released by the Conference Board reached a nine month low in April. NRF expects record sales of Mother's Day jewelry. Chinese shoppers and traders are cautious. The luxury goods industry has performed well, sparking optimism about next week's GemGen è ve exhibition and Geneva auction. Despite a decrease in manufacturing, the midstream market still holds a large inventory of bare diamonds. During the inspection period, the trading of raw stones was weak. De Beers has increased supply flexibility in the face of weak demand. In the fourth quarter, Hong Kong's imports of bare diamonds increased by 6% to $3.7 billion, while exports of bare diamonds decreased by 8% to $3 billion.
Alien diamond: The diamond market has slowed down after a difficult start. The irregular diamond market is better than the circular diamond market. The long oval, emerald, and Radiant shapes are the most popular styles. Products with a length to width ratio of short to medium perform weaker. The market's demand for cushion diamonds has decreased. Diamond sales of 0.30 carats are good, while diamond orders of 0.70 to 1.20 carats are relatively low. The performance of VS-SI grade diamonds has weakened, except for diamonds ranging from 1.20 to 1.49 carats. There is a shortage of well cut diamonds in supply. High quality irregular diamonds need to be sold at a premium. Retailers offer a wider range of products as consumers seek alternative shapes. The transaction price of oversized diamonds is higher than usual. Low quality irregular diamonds have poor liquidity and are difficult to sell.
US: Polishing market is sluggish. Dealers are concerned that prices will continue to decline. Weak retail sales of wedding rings have led to a sluggish wholesale market. Shaped gemstones perform better than round cut gemstones. Suppliers hope that the Las Vegas exhibition (May 31st to June 5th) can stimulate transactions. AGS Conclave showcases the strength of a first-class independent company.
Belgium: Market activity has slowed down due to low demand in the United States, China, and Europe. High end luxury goods continue to perform steadily, with optimism for next week's GemGen è ve exhibition. The demand for 0.30 to 1 carat, H-I, SI2 grade diamonds is stable, and the demand for shaped diamonds is also stable. During the De Beers trade fair, the raw stone market was cautious.
Israel: Dealers are concerned about a sharp decline in trading and market demand. The bare diamond market is weak, and the procurement volume in the United States has decreased. Oval and pear shaped VS grade diamonds are the best-selling shaped diamonds. Some of the consignment orders come from the United States. In April, the export value of bare diamonds decreased by 69% to $138 million, to $97.6 billion so far, a decrease of 44%.
India: The market remains calm due to sluggish orders from the United States and China. The domestic market is stable, and the Akshaya Tritiya Festival on April 22nd stimulated the momentum of gold and jewelry sales. According to reports, local consumers' choices are shifting towards higher quality goods. Manufacturers hold a large amount of inventory and reduce the production level of bare diamonds. Suppliers have become more cautious in paying more attention to compliance issues and demonstrating responsible procurement.
Hong Kong, China: Due to weak demand in the Chinese market, the mood of the wholesale market sentiment is depressed. The price reduction has not yet stimulated sales. The retail industry is gradually recovering, driven by the recovery of the tourism industry. The market in Chinese Mainland is slow. Diamonds with 0.30 carats and 0.50 to 0.70 carats, D-J color, and VS-SI clarity sell well. Shaped diamonds also remain stable and perform better than round diamonds.