Rapaport's Weekly Round-Up: Slow Trade, Buyer's Market

Market Analysis
16/10/2015 10:22

"Current rough prices unsustainable and unacceptable", is how Rapaport kicks off their weekly Market Comments, which comes as little surprise after it was announced this week that sightholders rejected roughly 50% of goods at De Beers' latest sight. "We believe rough prices need to fall at least another 20% to ensure profitability", Rapaport adds. Market Comments reports that trading has been quiet more or less across the board, but that U.S. demand for SI-I2 clarity diamonds has been steady to strong in India, Belgium and the U.S., reflecting a buyers' market as suppliers lower prices. However, "Buyers are limiting purchases to fill specific orders, leaving suppliers with large inventories of unsaleable goods."  Rapaport also notes that trading was slow in Hong Kong with few orders and no inventory buying. Buyers are cautious and afraid that polished prices will soften further. Trading was affected by weak Golden Week (Oct. 1-8) with fewer Chinese tourist shoppers and closing of some retail shops.