Diamond Market Mood, Rough Demand Improve

08/01/2016 12:04

Rapaport's "Weekly Market Comment", sums up the current mood of the diamond market as follows: "Polished prices [are] firm, market mood [is] much better and rough demand [is] improving due to polished shortages. Manufacturing [is] still at about 30% below capacity. We advise caution as current market prices are based on shortages created by artificial rough prices that are higher than resultant polished. Rough market volatility expected in 1H as miners reduce prices to increase revenue." Meanwhile, with the Chinese New Year right around the corner (Feb. 8), the 'Comment' states that demand is uncertain as the Chinese economy is under pressure and the Shanghai stock market has plummeted 12% since Jan. 1, already suspending trade on two different days. The yuan currency has been devalued another 2%, dropping twice already in the first week to reach its lowest point since March 2011. The U.S., however, is "steady after relatively positive holiday season."