Mumbai August Market Report: Concern As Domestic Demand Fades
August 31, 12
(IDEX Online News) – There is concern in the Mumbai diamond market as domestic demand has been fading of late. Up until now, this was what kept the industry going through the turbulence of the European debt crisis and the stumbling US economy. Business sentiment is depressed and the overall mood now is one of caution.
There are also no takers for rough diamonds even at softer prices and market watchers predict a full rough price correction in the near future. The domestic slowdown has also meant that polished sales have been slow.
There was no noticeable demand from the upcoming India International Jewellery Show (IIJS) to provide some lift in the market and the outlook for the subsequent Hong Kong show was also pessimistic.
Adding to the gloom are the failures of small and medium operators both in Mumbai and cutting centres such as Surat. The worry is that these failures might start spreading into the ranks of the bigger operators.
MUMBAI DIAMOND TRADING IN AUGUST
| Size in Carat (Sieve) | Comments | Forward Call |
| -0.01 (-2 ) | Fair demand for SI2-I1 goods. | Overall demand will remain very low. Demand & Prices for VVS-VS will be very soft. |
| -0.02 (+2-6.5) | Good demand for white SI2-I2 goods. Fair demand for VS-SI/Top shades. | Overall demand & prices will remain soft. Demand & Prices for VVS-VS will be very soft. |
| 0.03-0.07 (+6.5-11) | Good demand for SI2-I1 whites. Fair demand for VS-SI/Top shades. | Overall demand & prices will remain soft. Demand & Prices for VVS-VS will be very soft. |
| 0.08-0.14 (+11-14) | Good demand for SI & piqué goods. | Overall demand will be low. Prices will be under pressure. |
| 0.15-0.17 (+14-15.5) | Good demand for SI & piqué goods. | Overall demand will be low. Prices will be under pressure. |
| 0.18-0.22 (1/5) | Fair demand for SI goods. | Overall demand & prices will remain low. |
| 0.23-0.29 (1/4) | Fair demand for SI goods. | Overall demand & prices will remain low. |
| 0.30 (1/3) | Good demand for VS-SI goods. Fair demand for piqué goods. | Steady demand & prices will be seen. |
| 0.40 (3/8) | Good demand for VS-SI goods. | Steady demand & prices will be seen. |
| 0.50 (1/2) | Good demand for VS-SI/K+ goods. Fair demand for piqué goods. | Demand for SI goods will remain stable. Prices will remain under pressure for VVS/VS goods. |
| 0.75 (3/4) | Good demand for +0.90 cts. VS-SI/F-J col. Fair demand for I1-I2/I+ goods. | Demand for SI goods will remain stable. Prices will remain under pressure for VVS/VS goods. |
| 1.00 (4/4) | Good demand for SI/K+ goods. Fair demand for I1-I2 goods. | Overall demand will remain stable. Demand & prices for VVS-VS goods will remain soft. |
| +3.00 | Fair demand for SI-I1/G-K col. | Overall demand & prices will remain soft. |