Polished diamond prices surge in 1H 2011 with RapNet Diamond Index for 1ct up 34.3% and RapNet Composite Index up 32.5%. Rapaport estimates rough prices rose about 32% in 1H. Trading slows slightly as Far East buyers avoid large inventory purchases in summer months. Chinese bank ICBC signs MOU with AWDC to finance Antwerp diamond trade. Israel’s 2Q polished exports +22% to $1.9b, rough imports +49% to $1.3b. Japan’s May polished imports +11% to $52.5m. Yair Sahar elected Israel Diamond Exchange president. TRADE ALERT: Dubai releases $157m worth of KP certified Marange rough and South Africa also dealing in Marange goods. Responsible buyers should require written supplier guarantee that they are not selling them Marange diamonds.

 

Global Markets

United States: Demand for polished is stable overall. Trading has slowed given the shorter week due to the July 4 public holiday and as many wholesalers have closed for their summer vacations. Retailers continue to report steady improvements compared to last year with bridal sales representing the bulk of transactions. Stones for engagement rings of 1.00-carat, G-H, SI1 continue to be the most popular item among consumers.

Belgium: The past week has signaled slightly slower activity in the polished market with the approach of the summer vacations. Still, trade is being done, with a steady demand for goods, particularly in the VS-SI categories. Rough trading remains relatively strong as prices continue to trend upwards.

Israel: Activity slowed slightly this week as customers in the U.S. enjoyed a shorter working week and as Far East buyers appeared to be holding back from making large inventory purchases after the Hong Kong show in late June. There remains an aggressive intention to deal in the diamond exchange as cutters seek to maintain their position in the market. There is good demand for dossiers, 0.30-carat to 1.99-carat, G-H, VS2-SI goods with some shortages reported in the SI clarities.

India: Polished trading has eased as buyers are showing resistance to the high prices requested by sellers. Still, expectations remain that prices will continue to increase in the coming months as manufacturing costs continue to rise. There is good demand from local and Far East buyers, particularly for smaller goods, -2, stars, and melees and in the carat sizes. Cutters are trying to ramp up manufacturing but they continue to face labor shortages, especially as many workers seek to return to their farms during the current monsoon season. Rough trading remains cautious as high premiums persist.

China: Trading is stable but relatively slow as is expected during the summer months. Buyers have also grown cautious regarding polished price levels and appear prepared to hold off on building inventory goods for now. Demand is focused on round, 0.30-carat to 1.10-carat, D-H, VS-SI certified diamonds with growing interest in fancies and parcel goods for fashion jewelry.

Hong Kong: Demand has softened slightly since the June Hong Kong show as buyers appear satisfied that they have sufficient inventory to last through the slower summer months. As a result, buyers have become more selective about the goods they purchase and the prices they agree to pay.