Rapaport TradeWire 7/11/2008
Rapaport TradeWire - Friday, July 11, 2008
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News: De Beers raises overall rough prices by 5% for SI+ goods, with
rough yielding 1ct+ SI polished increased by 10-15% and 0.20ct+
increased 3-5%. July DTC sight estimated at $720 mil. U.S. retail
demand under pressure as consumers stick to necessities. Indian
trading weak and manufacturing at standstill due to worker strike.
U.S. BLS May jewelry price index +10%. Nordstrom June sales -14% to
$731 mil. and same-store sales -19%. JCPenney June sales flat at $1.6
bil., same-store sales -2.4%. Finlay to delist Nasdaq and trade OTCBB
due to weak stock price. Rockwell Diamonds June rough sale at $7 mil.
for 2,673cts. Belgium June rough imports +30% to $1.05 bil. and
polished exports +20% to $1.2 bil.
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ANNOUNCEMENTS:
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=========================
RAPAPORT TENDERS IN INDIA
=========================
Polished Diamond Tender – By Appointment Only
July 13–17, 2008
Over 3200 carats, Rounds and Fancies, 0.01 up to 2.00 carats
D-M, VS-I3, Large selection of promotional qualities, Over 150 Lots
For Contact Manisha@diamonds.net or 91-22-6637-6633
===========================================
Rapaport will be exhibiting at the following shows:
JA New York July 27-30;
India Int’l Jewellery Show Aug. 7-11;
Singapore, Aug. 21-24; London, Aug. 31 to Sept.3
To view all events and details
http://www.diamonds.net/Events/default.aspx
==========================================
Rapaport International Diamond Conference
Sept. 8, 2008, New York, Waldorf Astoria Hotel
“2010, The Next Decade - Preparing For The Future”
Register via email: conference@Diamonds.Net
==========================================
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RETAIL QUOTE:
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"There has certainly been a boom in Houston since the energy markets
have been doing so well. A lot of our customers are doing the best
they've ever done."
---Segev Zadok at Zadok Jewelers
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WORLD NEWS:
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---DTC July Sight Est. $720M
Diamond Trading Company (DTC) sightholders were critical of the price
increases implemented by the De Beers marketing unit at its July sight
week. This sight, the sixth of the year, had an estimated value of
$720 million.
Industry insiders said the higher value of the sight --the highest of
the year so far-- had more to do with the fulfillment of intentions to
offer (ITO) rather than the recent price increase. Sightholders
reported little change in the assortment of goods, but said that high
quality goods were of especially good color and clarity.
---U.S. Jewelry Prices +10% in May
The jewelry price index rose 9.5 percent in May. When combining the
watches and jewelry categories, the year-to-year difference was an
increase of 8 percent in the United States. Government stats compare
its jewelry price index to 100 basis points in December 1986.
---Dubai Rough Tender Set for July 13
The Dubai Diamond Exchange (DDE) plans a rough diamond tender July
13-15, 2008. DDE is hosting the tender in partnership with Global
Diamond Tenders DMCC, and the event will be held in the Dubai
exchange. DDE re-launched its rough tenders in May. DDE said 26,000
carats of South African run of mine production would be presented for
sale, supplemented by 3,650 carats of goods from the Kao Mine in
Lesotho.
---Panama: ‘Last of the Untapped Diamond Markets’
At a time when diamond dealers are eyeing Dubai, China, and India as
the new growth markets for the diamond market, Panama is slowly
emerging as the industry underdog and as a gateway to the largely
untapped Latin American region. There are more than 12,000 jewelry
stores spread across 20 countries in Central and South America and 23
islands across the Caribbean, representing a $7 billion market for
diamonds and jewelry. The Panama Diamond Exchange is hoping to serve
as a hub for these markets and has recruited government to incentivize
the trade. These include pronouncing the exchange a free zone area for
25 years, allowing tax exemptions on imports and exports associated
with the complex.
---Rapaport News Broadcast
The Panama Diamond Exchange expects serious growth potential for
diamond trading and diamond jewelry sales in Central America. Exchange
president Erez Akerman talks about these projections. Adalah-NY stages
another protest on the doors of Leviev Diamond on Madison Avenue.
Larry Gordon, co-chair of Jewelers on the Fairway, discusses the
group's upcoming golf tournament at Trump National in Briarcliff
Manor, New York.
http://www.diamonds.net/news/NewsItem.aspx?ArticleID=22292
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DIAMOND STATS:
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---Belgium June Imports/Exports (YTD = year to date)
Jun %Chng YTD %Chng
($Mil) ‘07 ($Mil) ‘07
Polished Exports $1,161 20% $6,525 24%
Polished Imports $1,224 25% $6,418 29%
Net Polished $(63) N/A $107 -63%
Rough Imports $1,054 30% $5,866 17%
Rough Exports $1,180 8% $6,315 11%
Net Rough $(126) 55% $(449) 31%
Net Diamond Account $63 -77% $556 -41%
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RETAIL & WHOLESALE NEWS:
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---June Retail Performance Softer, Jewelry Sales Help Boost Saks
Retail sales during the month of June at big box stores across the
United States were basically in-line with expectations as the weak
economy continues to keep consumers home. Nordstrom Inc.’s sales fell
14 percent to $731 million and same-store sales decreased 18.6
percent. Retailer Saks Incorporated sales rose 2.6 percent to $243.8
million. Same-store sales rose 1.9 percent. J.C. Penney Company's
sales were flat at $1.6 billion and same-store sales fell 2.4 percent.
Over at Kohl's Corporation sales rose 11 percent to $1.49 billion and
same-store sales rose 2.3 percent.
---Signet Proposes Number of Corp. Changes
Signet Group plc recommends a series of changes to shareholders
whereby the primary listing of Signet will be moved from the London
Stock Exchange to the New York Stock Exchange and, in parallel, the
domicile of the parent company of the Group will be moved to Bermuda
and company name would be Signet Jewelers Limited.
---Finlay to Trade on OTCBB, Delist from NASDAQ
Faced with a falling stock price Finlay Enterprises Inc. is in the
process of transferring the quotation of its shares to the OTC
Bulletin Board (OTCBB.) Shares in the company slipped below the dollar
mark on February 25 and bottomed-out at 34-cents on April 14. NASDAQ
notified Finlay on July 2 trading would be suspended because the
jeweler had not regained compliance and the company does not plan to
appeal the decision.
---Gitanjali May Bid for Whitehall
Gitanjali Gems may buy Whitehall Jewelers, India’s Economic Times
reported citing unnamed sources. The deal could value at between INR
350 crore ($81 million) and INR 400 crore ($93 million.) Whitehall
recently filed for chapter 11 bankruptcy protection, and asked a U.S.
court permission to auction its assets by July 16. At the same time,
Gitanjali has been strengthening its foothold in India and the United
States through mergers and acquisitions.
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GENERAL NEWS:
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---Security Guards Arrested in $3M Theft from Diamond Center
Four security guards at the South African Diamond Center have been
arrested for carrying out a theft of ZAR25 million ($3.2 million)
worth of cash and diamonds from company Art Ash located in the
complex. The theft took place on the morning of June 26.
---Leviev Diamonds Fires Striking Workers
Nearly three weeks of controversial industrial action at Lev Leviev
Diamonds (LLD) ended when 148 striking workers were let go. About 100
others, who have not been camping out near LLD's premises, were served
with notices of dismissal by the Messenger of the High Court.
Mineworkers Union of Namibia (MUN) planned to appeal the dismissals.
---JVC: Training for Rough Diamond Traders - U.S. Statutory
Requirements
The Jewelers Vigilance Committee (JVC) is presenting “Training for
Rough Diamond Traders: U.S. Statutory Requirements” at the JA/NY
Summer Show, Jacob Javits Convention Center, Monday, July 28, 2008,
10:30 – 12:00 noon, meeting room 1E03.
---HRD Antwerp Launches Refined Cut Grade
HRD Antwerp has fine-tuned its diamond grading system by introducing a
‘refined’ cut grade. Instead of reporting about two criteria –
proportions and finish - the HRD Antwerp - Diamond Lab will now assess
the diamond cut according to three criteria, being 'proportions',
'symmetry' and 'polish'. In addition, HRD Antwerp now introduces an
‘excellent’ cut grade on top of its ‘very good’ quotation.
HRD Antwerp will hold a symposium on its HRD Antwerp Cut Grade on July
17, 2008 at 5 p.m. at its premises.
===================
DIAMOND MINING NEWS:
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---Rockwell June Sale Nets $7M
Rockwell Diamonds Inc. sold 2,672.92 carats for $6.968 million at its
June sale, which was the company's fifth sale of the year. Prices
received for large (+10 carat) stones of good color were particularly
strong: $34,650 per carat was achieved for a 69.59 carat stone,
$23,594 per carat for a 20.98 carat stone, and $21,058 per carat for a
10.47 carat stone. Rockwell offered 16 stones of 10 to 20 carats, five
stones of 21 to 30 carats, one of 50 to 60 carats and one stone of 60
to 70 carats.
---Diamond Major Lends Hudson $2M for Greenland Diamond Project
Hudson Resources reported that an unnamed major miner agreed to
provide interim financing for its Greenland diamond project. The
agreement allows Hudson to draw up to $2 million at the prime lending
rate plus 2 percent to spend on the project. The loan matures January
4, 2009.
---Cream Minerals Updates the Trade on Progress in Sierra Leone
Cream Minerals Ltd., which is prospecting on the Sewa River in Sierra
Leone, exported a parcel of diamonds to Canada including 112 stones
with a total weight of 53.93 carats. An independent value estimate of
$10,701 from the Government Gold and Diamond Office (GGDO) of Sierra
Leone was attached (along with a Kimberley Process Certificate.) This
value estimate was a basis upon which the 6 percent royalty on
diamonds payable to Sierra Leone is established. The independent
valuation indicated an average value of $198/ct for the parcel which
included one 2.92 carat stone valued at $1,071/ct. This compares
favorably with an average value reported for diamonds from the Ekati
($140 per carat) and Diavik ($104 per carat) mines in Canada, Cream
determined.
---EU Widens BHP Billiton, Rio Tinto Probe
The European Commission widened its antitrust probe into the proposed
acquisition of Rio Tinto Inc. by BHP Billiton Ltd., saying an initial
investigation revealed concerns about higher prices and reduced choice
for European customers of the mining concerns. Under European Union
rules, the Commission now has until November 11 to make a final
decision.
---Peregrine Appoints Boyd to Board
Peregrine Diamonds appointed Robert Boyd, chairman of True North Gems,
to its board of directors. Boyd also serves as a director of the
Prospectors and Developers Association of Canada and the Association
for Mineral Exploration British Columbia. Before joining True North,
Boyd was CEO of Ashton Mining of Canada until it merged with Stornoway
Diamond Corporation.
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ECON WATCH:
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For week ending July 10, 2008
Econ Watch:
Jul 10 Jul 3 Chng
$1 = Euro 0.634 0.637 -0.003
$1 = Rupee 42.9 43.3 -0.4
$1 = Israel Shekel 3.35 3.27 0.08
$1 = Rand 7.71 7.75 -0.05
$1 = Canadian Dollar 1.01 1.02 -0.01
Precious Metals
Jul 10 Jul 3 Chng
Gold $947.20 $933.90 $13.30
Platinum $1,998.00 $2,016.00 -$18.00
Stock Indexes
Jul 10 Jul 3 Chng Chng%
BSE 13,926.24 13,094.11 832.13 6.35%
Dow Jones Avg. 11,229.02 11,288.54 -59.52 -0.53%
FTSE 5,406.80 5,476.60 -69.80 -1.27%
Hang Seng 21,821.78 21,242.78 579.00 2.73%
S & P 500 1,253.39 1,262.90 -9.51 -0.75%
Yahoo! Jewelry Index 819.76 868.61 -48.85 -5.62%
USA
Abazias $0.52 $0.52 $0.00 0.00%
Birks & Mayors $2.65 $3.00 -$0.35 -11.67%
Blue Nile $38.52 $40.42 -$1.90 -4.70%
Charles & Colvard $0.90 $0.95 -$0.05 -5.26%
Collector's Universe $6.80 $7.74 -$0.94 -12.09%
DGSE Companies, Inc. $2.75 $2.71 $0.04 1.48%
Finlay $0.27 $0.41 -$0.14 -34.15%
Fuqi International $8.87 $8.54 $0.33 3.86%
JCPenney $31.90 $36.69 -$4.79 -13.06%
Kohl's $40.00 $42.52 -$2.52 -5.93%
Lazare Kaplan $8.51 $8.50 $0.01 0.12%
LJ International $2.16 $2.27 -$0.11 -4.85%
Macy's $16.42 $18.50 -$2.08 -11.24%
Man Sang $5.60 $5.96 -$0.36 -6.04%
Movado Group $19.05 $18.97 $0.08 0.42%
Nordstrom $28.49 $30.72 -$2.23 -7.26%
Saks $9.40 $9.77 -$0.37 -3.79%
Signet $9.09 $9.63 -$0.54 -5.61%
Sotheby's $23.57 $24.35 -$0.78 -3.20%
Tiffany $38.15 $40.32 -$2.17 -5.38%
Wal-Mart $57.29 $56.60 $0.69 1.22%
Zale $16.74 $18.05 -$1.31 -7.26%
EUROPE
Bulgari €6.21 €6.40 -€0.19 -2.97%
Citizen Holdings €4.65 €4.70 -€0.05 -1.06%
Esa €13.34 €12.81 €0.53 4.14%
Golay-Buchel CHF 2,480.00 CHF 2,480.00 CHF 0.00 0.00%
LVMH €62.27 €66.82 -€4.55 -6.81%
Pinault P-R SA €60.70 €66.54 -€5.84 -8.78%
Richemont SA CHF 55.10 CHF 55.10 CHF 0.00 0.00%
Sakha Diamonds €0.59 €0.61 -€0.02 -2.64%
Swatch Group CHF 229.90 CHF 235.50 -CHF 5.60 -2.38%
Theo Fennell (pence) 31.00 31.00 €0.00 0.00%
HONG KONG
Hang HKD 2.05 HKD 1.91 HKD 0.14 7.33%
King Fook HKD 0.73 HKD 0.72 HKD 0.01 1.39%
Noble Jewelry HKD 1.21 HKD 1.23 -HKD 0.02 -1.63%
Tse Sui Luen HKD 0.84 HKD 0.84 HKD 0.00 0.00%
INDIA (rupee)
Classic Diamond 42.10 41.30 0.80 1.94%
Gitanjali Gems 264.70 233.85 30.85 13.19%
Rajesh Exports 55.20 51.85 3.35 6.46%
Reliance 2,044.10 2,071.10 -27.00 -1.30%
Su-Raj Diamonds 64.00 59.95 4.05 6.76%
Titan 1,076.45 1,035.35 41.10 3.97%
Zodiac JRD 26.65 21.40 5.25 24.53%
Shantivijay Jewels 115.10 119.00 -3.90 -3.28%
Shukra Jewellery 3.35 3.70 -0.35 -9.46%
Suashish Diamonds 368.05 357.80 10.25 2.86%
NEW ZEALAND
Michael Hill NZD 0.78 NZD 0.75 NZD 0.03 4.00%
SINGAPORE
Gems TV Holdings SGD 0.125 SGD 0.120 SGD 0.005 4.17%
Sarin Technologies SGD 0.380 SGD 0.380 SGD 0.000 0.00%
TEL AVIV
Tobias Jewellery Ltd ILS 598.30 ILS 551.70 ILS 46.60 8.45%
MINING STOCKS
(pence unless noted)
Jul 10 Jul 3 Chng Chng%
USA
Anglo American $29.24 $32.37 -$3.13 -9.67%
CANADA
Archangel CAD 0.90 CAD 1.15 -CAD 0.25 -21.74%
Harry Winston CAD 24.82 CAD 27.89 -CAD 3.07 -11.01%
Mountain Province CAD 4.42 CAD 4.70 -CAD 0.28 -5.96%
Peregrine Diamonds CAD 0.25 CAD 0.22 CAD 0.03 13.64%
Rockwell Diamonds CAD 0.39 CAD 0.40 -CAD 0.01 -2.50%
Shore Gold CAD 2.38 CAD 2.46 -CAD 0.08 -3.25%
Stornoway Diamond CAD 0.27 CAD 0.29 -CAD 0.03 -8.62%
Tahera Diamond CAD 0.03 CAD 0.04 -CAD 0.01 -14.29%
True North Gems CAD 0.32 CAD 0.37 -CAD 0.06 -14.86%
UK (pence)
African Diamonds 67.0 76.0 -9.0 -11.84%
BHP Billiton 1,728.0 1,749.0 -21.0 -1.20%
Firestone Diamonds 100.0 120.0 -20.0 -16.67%
Gem Diamonds 970.0 959.0 11.0 1.15%
Mano River 9.8 10.3 -0.5 -4.88%
Mwana Africa 38.0 37.5 0.5 1.33%
Namakwa Diamonds 140.0 140.0 0.0 0.00%
Petra Diamonds 96.0 100.4 -4.4 -4.35%
Rio Tinto plc 5,480.00 5,460.00 20.0 0.37%
===================
INDIA MARKET REPORT:
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---Diamond India to Source Abroad
India, a consortium of 58 top diamond merchants, is planning to source
diamonds directly from mines abroad. The consortium plans to do
business worth Rs430 crore for 2008-2009. Diamond India currently
sources rough stones from Israel and Belgium for a majority of its
imports. Diamond India decided to source the stones directly from the
mines as Diamond Trading Company removed many Indian companies from
its list of sightholders this year.
---RBS to Continue to Service ABN Amro India
The India unit of ABN Amro's diamond business, which was taken over by
Fortis in the recent buyout of the bank, is temporarily being serviced
by the Royal Bank of Scotland (RBS,) until Fortis secures the
necessary license to operate in the country. A company representative
stressed that the measure is not permanent.
---Bharat Diamond Bourse to Begin Operations in Nov.
The Bharat Diamond Bourse (BDB) plans to begin operations by November
2008. BDB aims to set up infrastructural facilities for the promotion
of exports of diamonds and diamond jewelry. BDB will have a
single-window facility, accommodating about 2,500 small and large
diamond traders, about 30 banks, a dedicated customs house facility
and safe deposit vaults.
---India: Diamond Workers' Raise Get Political Attention
The unrest among diamond workers is turning political. State fisheries
minister Purushottam Solanki and his MLA brother Hira Solanki promised
to fight for the rights of the workers after the death of a Koli
worker in a violent demonstration on Sunday, and now dissident BJP
leaders Gordhan Zadaphia from Ahmedabad and Dhiru Gajera from Surat
contacted several industry heavy-weights pushing for peaceful
resolution of the issue.
---Polished: Sellers firm on prices because of price increases and
weak market conditions.
-1 point: Very good demand: +$225 whites.
Good demand: $80-$160 whites.
Fair demand: $150-$350 TTLC.
-2 point: Good demand: +$300 whites.
Fair demand: $200-$250 whites;
$125-$150 TTLB & $125-$400 TTLC.
2-7 point: Good demand: +$250 whites.
Fair demand: $100-$150 TTLB & $125-$400 TTLC.
8-18 point: Good demand: +$550 whites.
Fair demand: $150-$200 TTLB & $200-$450 TTLC.
20 points: Good demand: +$650 whites.
Fair demand: $200-$400 whites.
25 points: Good demand: +$700 whites.
Fair demand: $200-$450 whites.
33 points: Good Demand: $1400-$1600 whites.
Fair Demand: $150-$500 whites.
50 points: Good demand: +$2000 & $1000-$1,500 whites
Fair demand: $700-$800 & $300-$500 whites.
75 points: Very good demand: +$3,000 whites.
Good demand: $700-$900 whites.
1 carat+: Very good demand: +$5,000 whites.
Good demand: $1,500-$4,500 whites.
Fair demand: $500-$1000 whites.
Princess: -3 point: Fair demand: $200-$250 & $325-&375 whites.
+3 point: Fair demand: $$250-$300 & $350-$400 whites.
+9-18 point: Good demand: +14 pts $600-$650 whites
Fair demand: $225-$275 & $300-$400 whites.
20 point: Fair demand: $350-$400 whites & $750-$800 whites.
25 point: Fair demand: $350-$400 whites.
50 point: Fair demand: $600-$1,000 whites.
75 point: Fair demand: $1,200-$1,400 whites.
1 carat+: Good demand: +$1,500 whites.
Marquise: -6 point: Very good demand: $400-$550 whites.
Good demand: $250-$350 whites.
+7-18 point: Very good demand: $500-$650 & +14-point $850-
$900 whites.
Good demand: $225-$300 & +14-point $300-$350
whites.
20 point: Good demand: $675-$725 & $950-$1000 whites.
Fair demand: $325-$375 whites.
25 point: Good demand: $1,000-$1,100 whites.
Fair demand: $400-$450 whites.
33 point: Good demand: $1,200-$1,400 whites.
50 point: Good demand: $1,600-$1,800 whites.
75 point: Good demand: $1,100-$1,400 & $2,600-$3,000 whites.
1 carat+: Very Good demand: +$1,200 whites.
Tapers & Baguettes:
Good demand: $550-$800 +5mm whites. $225-$300
2mm-2.5mm whites; $300-$350, 2.5mm-3mm whites;
$350-$450 3mm-4mm, $500-$600 4mm –
5mm & $175-$250 +2mm-3mm whites.
---ROUGH: Diamond cutters went on strike in a wage dispute, causing
serious cutbacks in activity.
1-5 point: Very good movement: $75-$140 makeables; $85-$180 crystals.
Good movement: $25-$65 makeables.
Good movement: $50-$90 OW TTLB & TTLC;
Fair movement: $5-$20 OW TTLB & TTLC.
6-20 point: Good demand: $130-210 crystals; $120-$160 makeables.
Fair demand: $40-$140 makeables; $60-$80 clivage;
$50-$100 makeables; Very good movement $80-$180;
Fair demand $60-$120 fancy shapes;
$60-$110 OW TTLC & TTLB rounds.
21-50 point: Good demand: $235-280 makeables; $160-$340 crystals.
Fair demand: $110-$220 rounds; $100-$150 crystals; $70-
$130 clivage; Very good movement $140-$220 and
Fair demand $75-$100 fancy shapes; Good demand $70-$150 &
Fair demand $20-$50 OW TTLC & TTLB.
0.51-1.00 carat: Good demand: $80-$125 & $130-$325 makeables;
$125-$250 & $300-$450 crystals.
Fair demand: $70-$100 clivage; Very good demand $225-
$325 and Fair demand $70-$125 fancy shapes;
Good demand $140-$180 & Fair demand $90-$125 OW TTLC
& TTLB.
1.01-2.00 carat: Fair demand: $225-$600 rounds; $225-$800 crystals;
$125-$170 clivage; $200-$400 all fancy shapes.
Good demand $170-$225 OW TTLC & TTLB.
2.01-3.00 carat: Good demand: $225-$1,500 makeables; $500-$1,000 OW
TTLC & TTLB & $350-$1,700 crystals.
Fair demand: $300-$400 clivage; $125-$400 flats &
$500-$1,000 fancy shapes.
5.00 carat+: Very good demand: $1,200+ makeables, crystals & all fancy
shapes till L color.
Mixed Lot: Good demand: $2-$50.
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CREDITS:
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This week’s TradeWire® has been brought to you by Jeff Miller and Zach
Helke of the Rapaport News Team.
E-mail: news@diamonds.net
For up to the minute 24/7 news coverage visit www.Diamonds.net
And view our broadcasts at http://www.diamonds.net/news/
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