The mood among diamond dealers was relatively upbeat on the opening day of the Hong Kong Jewellery & Gem Fair as steady buyer traffic raised expectations for the rest of the show, reports Rapaport News.
Trading in polished diamonds has speeded up over the past month with dealers expecting retailers in China and the U.S. to build up inventories ahead of the holiday season, and the Hong Kong fair presents the opportunity to look for goods, exhibitors told Rapaport News.
Approximately 500 diamond companies are exhibiting at AsiaWorld-Expo near Hong Kong airport from September 13 to 17. The second venue featuring finished jewelry is scheduled to run from September 15 to 19 at the Hong Kong Convention & Exhibition Centre.
“The market has got better in the last four weeks,” said Tony Mehta, owner of Diasqua Group, a Hong Kong-based supplier of diamonds up to 10 carats. “People haven’t bought in a while and prices have dropped, so they’re seeing an opportunity to find goods.”
The show opened Tuesday with more than 3,600 exhibitors from 55 countries taking part. Around one-third are Hong Kong companies. Organizers expect about 58,000 buyers during the seven-day event which includes the diamond and gemstones fair and the finished jewelry show.
The market tends to improve around the September Hong Kong show as traders return from the summer break in July and August, added Sandeep Selot of Hong Kong-based Elements Limited, a supplier of mainly melee goods. “It’s always a question if it’s sustainable,” Selot added.
People are still conservative given the state of the market in the past few years, Mehta said, adding that retailers are holding lower inventory than in the past. While traffic was promising on the first day, he noted many buyers were assessing the market, comparing prices and observing stock levels.
Mahiar Borhanjoo, managing director of Venus Jewel International, an India-based manufacturer of solitaires from 0.30-carat to 15 carats, said he met with retail buyers from the Middle East, the U.S. and China, including “one or two new customers.”
Prices are generally stable as there are fewer goods on the market compared with a year ago, said Nissim Zuaretz, CEO of DN Diamonds, an Israel-based supplier of large stones. “For the nice goods, triple EX, none, prices are strong,” he added.
