November 12th, 2017
DIAMOND MARKET OVERVIEW
There was some optimism in the trade about retail demand in the US and Asia. Luxury goods companies, including France's LVMH and Kering, have reported renewed buying appetite from Chinese consumers for jewellery and watches. According to Bain & Co, the overall luxury market is expected to grow by 5% percent, with jewellery being among the big-ticket items and the fastest-growing luxury categories. In Hong Kong, retail sales for the month of September grew at the fastest pace year-on-year in more than 30 months, according to government data. The increase was mainly driven by visitors from mainland China. Economic data in the main US market is suggesting healthy spending by shoppers during the all important end of year sales season. In the broader market, traders said there was good demand for larger sizes of 2 carats. The main polishedprices index ended a touch higher, opening at 115.35 on Friday, from Monday’s opening at 115.12
Rough traders continued to reported slow market conditions following India’s Diwali holiday. There were reports of weaker prices at recent tenders. Meanwhile, Alrosa sold slightly higher volumes of rough diamond in October, versus September. The Russian state miner said rough sales in October totalled $326.7 million. This compares to rough diamond sales of $305.8 million in September.
CORPORATE AND EVENTS
World’s top diamond producer by output, Alrosa, had quite a month in October as the Russian miner managed to find three large rough, gem-quality stones ranging from 82 to 163 carats at the Jubilee kimberlite pipe of its Aikhalsky Mining unit in the country’s northeast, mining.com reported. The diamonds recovered by Alrosa are an 82.82-carat and a 108.34-carat transparent yellow-tintedstones, as well as a 163.11-carat rough yellow-hue diamond, said the mining.com report.
Indian Commodity Exchange (ICEX), the world’s first diamond derivatives exchange, on Wednesday said it has successfully completed its first diamond futures contracts settlement with the total traded quantity in November expiry for 5,382.08 carats valued at 173.32 crore, the hindubusinessline.com reported.
ICEX had commenced operations on August 28 with the launch of three monthly diamond futures contracts — of November 2017, December 2017 and January 2018 expiry, respectively, said the hindubusinessline.com report
World’s top diamond producer by output, Alrosa, had quite a month in October as the Russian miner managed to find three large rough, gem-quality stones ranging from 82 to 163 carats at the Jubilee kimberlite pipe of its Aikhalsky Mining unit in the country’s northeast, mining.com reported. The diamonds recovered by Alrosa are an 82.82-carat and a 108.34 carat transparent yellow-tinted stones, as well as a 163.11-carat rough yellow-hue diamond, said the mining.com report.
After a tough end to 2016, luxury purchases are back in fashion, and that should bode well for the holiday season, CNBC.com reported. Last year, a sluggish economy and uncertainty around the U.S. presidential election weighed on shoppers' wallets for expensive goods, according to Bain & Company's annual global luxury study. But this year, the overall luxury market is expected to grow by 5 percent, with cars, costly experiences and high-end food accounting for a large share of spending, the report found, said the CNBC.com report. Shoes, jewelry and bags remain big-ticket items and the fastest-growing luxury categories, according to Bain. Those are sure to be on many shoppers' wish lists this holiday season, as brands try to lure customers in with bespoke options and one-of-a-kind deals. Tiffany & Co. has already been in the news for its luxury line of "everyday items," which includes a $1,000 tin can and a $425 protractor, the CNBC.com report said.
A US$1.3 billion (about 13.2 billion Pula) decline in Botswana export revenue during the first six months of 2017 is extremely worrying, economists have warned, The Southern Times reported. The warning was made by Econsult, a firm led by former Bank of Botswana deputy governor Keith Jefferies, in a quarterly report, said The Southern Times report. The report says exports between January and June 2017 were down by 25 percent compared to the corresponding period in 2016. According to the review compiled by Jefferies and his colleague Sethunya Sejoe, the trend is “extremely worrying” given the fundamental role export-led growth plays in the local economy, the Southern Times report said.