HK Show Dispels Some of Diamond Traders Fears
September 22, 11
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Some 2,000 diamond traders are meeting at the show to buy and sale their goods alongside jewelry, pearl and semi-precious gem traders. After a good first day, the following days were slower, partially because the main venue of the fair opened at the Hong Kong Convention Centre.
Traders provided mixed reports on demand. Indian firms reported strong demand and sales of one carat certified goods, in the GH/VS-SI range. Israeli traders claimed that one-carat rounds are not moving.
This may reflect different pricing policies. The Israelis are sticking by their high prices, largely unwilling to budge. Indian traders, mainly mid- and smaller-size firms, were more flexible with their prices and therefore generated more sales. Large Indian firms were less inclined to lower prices.
Some fancy shape goods have good demand, mainly Hearts and princesses. Chinese buyers were very interested in Heart cut goods.
Larger goods – 2, 3 and 6 carats – sold well at some booths, while other exhibitors reported slow business. Companies specializing in large and fancy color diamonds reported a certain slower sales, but were however doing much better than they expected prior to the show.
Prices were and still are the biggest issue. Some buyers clearly had open orders to fulfill and bought goods were willing to pay to meet those demands. Otherwise, prices are a major obstacle, with manufacturers holding on to their high prices to protect their margins – hurt by rising rough prices. Buyers, on the other hand, understand that some manufacturers have liquidity issues, and are therefore more willing to be flexible with prices.
The fair at AsiaWorld-Expo, where loose diamonds, pearls and gems are offered, closes on Friday. The main venue at the convention center continues until September 25.