Weekly Diamond Market Report 17/12/04

| December 6th, 2017

Weekly Diamond Market Report 17/12/04
"Weekly Diamond Market Report 17/12/04"

Diamond market overview

There was a sense of renewed optimism in polished, with traders reporting good demand for commercial bread and butter merchandise in the main retail markets. In India, manufacturers have steadily increased production capacity following the Diwali break. This suggests inventories have come down resulting in a more balanced supply demand situation. The main polishedprices index ended the week lower, opening at 115.28 points, down from 116.00 at Monday’s opening.

Rough market

Rough traders continued to report cautious trading in the secondary market. The outlook for rough however appears to have improved. Inventories levels in polished have come down following a production halt during Diwali and steady demand being reported in the retail market. Meanwhile, market analyst at Canaccord Des Kilalea said in a research note published this past week that rough could see some firmness in the first quarter of next year if the holiday season experiences relatively good diamond jewellery demand on the back of increased marketing spending by the Diamond Producers Association (DPA) and De Beers. However, rough price increases will be muted, it added.

Corporate and events

Tiffany & Co’s sales and profit beat market estimates, helped by strong demand for its fashion and high-end solitaire jewellery in its first full quarter under new Chief Executive Alessandro Bogliolo, Reuters reported. Tiffany, whose traditional engagement and solitaire jewellery was popular among baby boomers, has been offering lower priced fashion jewellery in the past year after several quarters of declining sales in the category, said the Reuters report.

A possible breach of its banking agreements does not pose a big risk to Petra Diamonds because its finances will improve following the end of a labour dispute in South Africa and the lifting of an export ban in Tanzania, its chief executive said, Reuters reported. “We don’t regard it as a high risk to the business,” said Johan Dippenaar of the possible breach of loan terms, adding the mining firm was in talks with its banks on a monthly basis, the Reuters report said.

Russia’s most expensive diamond ever polished in the country, a giant 51.4 carat gem part of the iconic Dynasty collection, has failed to sell in an online auction held this week, mining.com reported. Alrosa, the world’s top diamond miner by output, said it didn’t receive a high enough offer for the impressive gem, which bears the same name as the entire Dynasty collection, the mining.com report said.

Source Idexonline

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