Rapport Market Review
Sales continue to improve, prices are stable, and all eyes in the market are on holiday sales. As retailers prepare for Christmas, the sales demand of the U.S. memo remains stable. The high-end market performs better than the medium market. Richemont's jewelry brands (Cartier, Van Cleef & Arpels and Bucherati) increased sales by 10% in the first half of the year to $7.4 billion. Brilliant Earth's sales increased by 2.5% in the third quarter to $114 million; due to the slowdown in the wedding sector, the company lowered its full-year performance expectations. As the Diwali holiday is about to begin, the inventory of Indian manufacturers has declined. The Kimberley Process Plenary Meeting was deadlocked due to the Russo-Ukrainian War. Rapaport warned G7 leaders of Russian sanctions loopholes and launched the U.S. diamond agreement. Lucara's sales forecast for 2023 will decrease by $40 million due to the split with HB. Anna Martin of GIA retired. Designer Henry Dunay died at the age of 88.
Alien drill: The alien market is slowing down. The price has fallen, but it is not as large as the round diamond. The price of longer oval, pear-shaped, radial and padded diamonds is higher than that of shorter diamonds. Medium and short proportions of diamonds are weak. With low demand and large inventory, the price of square cushion diamonds fell. The price of olive diamonds has remained stable due to the decline in supply. 0.30 carats of diamonds performed well. There are fewer diamond orders from 0.70 to 1.20 carats. VS-SI-level diamonds have lost market power, except for 1.20 to 1.49 carats of diamonds. Well-cut diamonds are in short supply. Excellent diamond cutting has a high premium. Retailers provide a wider range of products because consumers seek other cutting methods. The transaction price of super-carat diamonds is higher than usual. Alien diamonds that deviate from specifications and are poorly cut are difficult to circulate and sell.
United States: The U.S. industry is cautiously optimistic about the holiday season, and the memo sales are strong. Sales of round diamonds have improved. The market demand for long-cut diamonds is stable. The waist market mainly focuses on VS2-SI2 products. Natural diamonds regained the market share of synthetic diamonds. Indian companies closed their U.S. offices during Dilight Festival.
Belgium: As the holiday season approaches, business has stabilized and market sentiment has improved. Dealers benefited from the reduction of rough drill stocks in India. Customers do not buy for inventory. The price gap between inventory purchase and the purchase of orders for customers has gradually widened. European orders for VVS-VS diamonds with a clarity of less than 2 carat are stable. Pear-shaped, oval and horse-eye shapes sell well, padded drills sell slowly, and round drills sell well.
Israel: Due to the continuous war with Hamas and the slowdown in global transactions, the market is relatively quiet. The holiday of Day in India has reduced the purchase of naked diamonds in Israel. In October, exports of bare diamonds fell 1.7% to $4.52 billion.
India: Surat manufacturing is on vacation for 1-2 months during Dilight Festival until December 15. The sales office in Mumbai will reopen at the end of November. The industry has turned its focus to retail during the Indian holiday and wedding season, hoping that the stable demand for small carat diamonds can continue. Kalyan Jewellers reported a good start to the third quarter, including during the holidays. After the reduction of the supply of rough drills, the confidence of the industry has increased.
Hong Kong： China: Demand during the festival has driven retail and wholesale markets in Hong Kong and mainland China. Sales lagged behind previous years. 1 carat, D-I color, VS clarity, 3X-level diamond orders have performed well, and high-quality SI-level diamonds are in short supply and sold at higher prices. During the Double Eleven Shopping Festival (11/11), the purchase of pearls and gold is stable, and the market is more interested in diamonds that meet a lower budget (such as 0.30 to 0.50 carats, F-I color, VVS-VS clarity level).
