Hong Kong Show Lets Diamond Traders Down

The last two days of the show that closed Monday suffered from thin traffic at the loose diamonds and diamond jewelry sections, most notably at Hall 3. Buyers were for the most part Indians, looking for price opportunities.

After months of anticipation and weeks of collecting goods in the market, loose diamond traders wanted to try and recoup the higher price of rough and asked for somewhat higher polished diamond prices. They were met with staunch resistance from buyers and many deals did not go though due to the higher prices.

Exhibitors that decided to reduce prices were practically mobbed, giving them the benefit of volume, and by that a decent income despite the thinner margins.

Diamond jewelry sales were also softer than expected, with several exhibitors expressing great disappointment from the show.

This does not bode well for the diamond industry that, as stated, placed high hopes that the show will lead a change in prices towards the holiday season. This puts the battle closer to the front lines. Wholesalers will need to convince their retail clients of the need to raise prices, something that may not happen easily.

The concerns for prices in the near future are further fueled by a belief in the market that the supply of rough from De Beers, Alrosa and Angola will increase and that manufacturers will not only buy more but also pay more for the rough.

IDEX Online’s Polished Diamond Price Index edged up passed 118 in the days before the trade show, only to ease back as soon as it opened.