News: Polished prices increasing for round, 0.89 ct. and smaller, D-K, IF-SI1 goods, but discounts deep. 1 ct. stabilizing. US retailers paying high premiums for round and fancy, 2.50 to 2.99 ct., F-H, VS-SI diamonds with no center black. Melee improving. Inventories low. Manufacturers must keep production under control. Hong Kong loose-diamond show better than expected, with exhibitors closing sales on final two days. Some inquiries from Chinese buyers for small goods, though few of them attended. Jewelry show reflects shift to lighter-weight pieces as gold price keeps rising (+13% since Jan. 1 to $2,952/oz.). US tariffs likely to reduce China’s jewelry manufacturing.
Fancies: Large fancy shapes doing better than rounds. Prices stable or increasing for 2 ct. and larger diamonds. Better stones hard to find. Solid US interest in elongated Ovals with good shape and quality in D-I, VS-SI categories. Elongated Emeralds, Radiants and Pears in 2.50 to 2.99 ct. sizes trading at significant premiums. Oval and Pear, 0.30 to 0.49 ct., F-I, VS diamonds in demand. Ovals 5% to 10% more expensive than Pears in US market. Supply shortages supporting prices for Marquises. Square Cushions slow. Very well-cut fancy shapes difficult to find and commanding premiums. Off-make, poorly cut fancies illiquid.
United States:
Trading steady amid shortages in select categories. Market still memo-centric, with little inventory-buying. Retailers seeking 2.50 to 2.99 ct., F-H, VS-SI, rounds and fancies with no center black, paying premiums due to goods’ scarcity. Melee in demand. US February inflation better than expected at 2.8%.
Belgium:
Mood improving following Hong Kong show. Dealers cautiously optimistic, as goods are starting to move. Large stones in short supply. Belgium polished exports for February down 24% year on year at $783.7 million, with volume declining 20% to 297,700 cts.
Israel:
Market sentiment more positive after dealers report sales of 3 ct. and larger diamonds at Hong Kong show. Low inventories supporting prices, with some price increases in fancy shapes.
India:
Manufacturers reporting better Hong Kong show than anticipated, boosting market mood. Domestic and overseas demand increasing. Chinese buyers slowly returning, especially for small goods, but quantity of purchases still limited. Polished production remains low, supporting prices and sales.
Hong Kong:
Industry reflecting on show, which beat expectations but was slow relative to pre-pandemic times. Many Indian trade buyers. Dealers following up on sale leads. Fair attracted purchasers from around the world, but few Chinese clients present. Demand was very specific, with exhibitors holding prices firm amid high replacement costs.
