LATEST MARKET TRENDS -

News:

Global Market is slow but stable. Polished production rising, with India Feb. rough imports at 11-month high of $1.6B (-6% Year on Year), polished exports $1.7B (-28% Year On Year).

Botswana warns that G7 sanctions might harm its diamond industry.

US Federal Reserve holds interest rates at 5.25% to 5.5% after 3.2% inflation in Feb.

On 21 March 2024, the Bank of England held the base rate at 5.25% for the fifth time in a row. Financial markets are currently predicting the first cut in interest rates will be in June 2024, falling to around 3% by the end of 2025.

TRENDS

High inventories of Ovals and Pears globally due to slow sales and imbalance between supply and demand after Indian manufacturers shifted from rounds to fancy cuts last year. However cutters now returning to rounds.

Weakest size is 0.70ct in rounds category.

Sales of Hearts, Princesses and square Cushions very low still.

Longer Ovals, Pears, Radiants and Cushions are very popular and bringing in higher prices.

Goods with medium and short ratios are still hard to sell.

Supply shortages supporting prices for Marquises.

Well-cut stones hard to find and are commanding premiums on prices.

Oversizes for example 1.2cts trading at higher prices than usual.

MARKETS

Global diamond trade reflects varied market conditions across key regions.

In the United States, the market is subdued, with jewellers exercising caution in inventory purchases. However, there's steady demand for specific categories like round diamonds in the 1.75 to 2.99 ct. range, particularly in F-H color and VS2-SI2 clarity, although shortages persist. Additionally, elongated ovals and marquises are performing well.

In Belgium, trading is sluggish, with customers refraining from inventory purchases amid concerns about the impact of G7 sanctions on the supply chain. While there's steady demand for diamonds under 0.30 ct., those in the 1 to 3 ct. range are weak. Buyers are prioritizing cut quality, and fancies are only selling if the make is perfect.

Israel's market sentiment is weak due to sluggish demand from both the US and China. However, there are steady orders for premium diamonds.

In India, overall activity is down, with limited orders from major markets like the US, China, and domestic buyers. There's stable demand for diamonds in the 1 to 1.99 ct. range, particularly in G-H color and VS-SI clarity. However, VVS diamonds are weaker, and the demand for small diamonds is cooling as the Indian wedding season concludes.

source : Rapnet