The diamond industry on the whole is reeling under the effect of the high rough diamond prices and the weak rupee. But the industry is taking all steps to control the situation. Suggestions for cutting down or stopping rough imports for a few months are being aired by one and all, while the industry members also wait for the sliding Rupee to revive once again.
The Hong Kong fair seems to be a dampener too for the Indians as very few found it exciting enough. The reason could be because the Indian suppliers were extra cautious to close deals, given the situation they are now. In addition, even the usual large numbers of Indian business people were not present at the show. Some however expressed satisfaction with businesses concluded at Hong Kong, but many seem to have participated for visibility. Demand at the fair, according to a few participants, was fairly good, especially for lower range goods from Chinese buyers mostly.
Trading in the diamond market in Mumbai was rather subdued in the month of September. Export demand was fairly good from US, EU & Middle East Countries. Local demand for polished stones was quite high, given the sudden concentration on diamond jewellery from retailers, who found pushing diamonds was more profitable than gold. Rough diamond trading was quiet, again due to market conditions.
Polished diamond prices are under pressure in the Indian market and may continue to be so for the next 3 months, though demand is expected to increase with the oncoming festival season, both overseas and in India. Steady demand from US, for both loose stones as well as finished jewellery is keeping the Indian manufacturers busy. Demand from Middle East markets is high for Indian design jewellery.
Again, it is the domestic market which is the sustenance for the Indian diamond industry. The demand for polished stones has been increasing by the day due to the oncoming Festivals like Dusshera and Diwali. The domestic jewellery retail sector makes more than half of the year’s sales during these coming months. And with gold prices being what it is now, buyers are expected to move towards purchasing of diamond jewellery. Almost all diamond jewellery retailers are launching new collections especially crafted for Dusshera and Diwali festivals. They are also coming out with various offers that would attract the customer to buy diamond jewellery.
Shortage of rough diamond due to high prices and slackness in polished stones still persists in the diamond market. Liquidity problems continue and the cash crunch resulted in a few payment default cases, which of course is being settled amicably.
During the month of September 2013, the supply / demand situation was as follows:-
POLISHED: Rounds
0.005-0.15 cts, F-J / SI+, selling well; 1/5, H-J / VS, good demand
1/4-3/8, good demand, shortage of goods in market
1/4-3/4, D-J / SI+, selling well; moving fast
1/2-3/4, white good movement
0.80-0.90 cts, moving well; F-J / VVS good, but goods not available
1.00-3.00 cts, D-K / SI to pique, moving v. well, good demand, shortage of goods
1.00-3.00 cts, H-J / SI1+ fair demand
4.00+ cts, H-M / VS+ fair movement, no goods in market
Fancy Cuts
Emeralds and Stabbes (wide baguettes), 0.25-1.00 cts, good demand D-J / VS+, selling well.
Marquises 0.25-5.00 cts, F-J / VS+, selling well
Princesses, Pears and Emeralds, 2.00-5.00 cts, fair demand for H-K / VS, selling well
ROUGH:
Makeables: high demand; shortage of goods.
1-5 point: very good demand: makeables, good demand: OW TTLB & TTLC.
6-20 point: good demand: crystals/makeables. Shortage of goods
Good demand: fancy shapes.
21-50 point: fancy shapes are in good demand
0.51-1.00 carat: v. good demand: makeables; crystals. No goods available
1.01-2.00 carat: high demand: rounds; crystals; clivage; all fancy shapes.
2.01-3.00 carat: high demand / shortage of goods
5.00 carat+: good demand: $1,000+ makeables, crystals & all fancy shapes
Mixed Lot: good demand
Aruna Gaitonde, Rough&Polished
