There was a sharp improvement in market sentiment as the Hong Kong September show exceeded low expectations, accord to RapNews.
Sellers who reduced prices sold goods, while some manufacturers lowered prices to generate cash flow as Indian liquidity is tight.
There was steady demand for G-J, VS-SI goods, while high-end, D-F, VVS+ were very weak. Chinese jewelry demand was stable ahead of the October 1 Golden Week.
De Beers said global diamond jewelry demand was 3% up to $79 billion in 2013. Hong Kong 1H polished imports +9% to $9.7B, polished exports +17% to $6.8B. India Aug. polished exports -19% to $1.9B, rough imports +27% to $864M. Petra Diamonds sells 122.52ct. blue rough stone for $28M ($225K/ct.).
The fancy shape market was steady with fair demand for excellent shaped and larger polished sizes. Cutters are moving to fancy shapes because of significantly high rough prices for identical quality round diamonds.
Curves (pears and ovals) are doing better than squares (emerald and princess) in larger sizes with squares doing better in under the carat sizes.
Demand for Princess cut weak. Far East markets are becoming more aware of fancy shapes. Buyers are very selective regarding shape and cut quality, with extreme price differentials between excellent and average cut fancies.
Meanwhile, off-make, poorly-cut fancies illiquid and hard to sell even at very deep discounts.
