News from Mumbai
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26th February 2010
Dear Friends
The February Sight started unusually on the Wednesday and 2 days previously, on the Monday, there had been an official announcement from Mahiar Borhanjoo on DTC’s extranet, stating that there would be a high single digit price rise across the Boxes offered at the Sight.
Box trading in Antwerp immediately came to a standstill as Dealers and buyers waited for the new prices to be known on Wednesday, the first day of the Sight.
While premiums have certainly softened compared to the January Sight, demand for DTC rough has remained firm as the general view is that DTC assortments are better valued than other sources.
There is a consensus that polished prices should go up by at least 3-4% in the medium range qualities within the next month or so. Polished stocks are very low in Mumbai and at the same time, demand is apparent for all Pique Pointers I1, I2, I3 qualities and also strong for smaller sizes, especially below –11.
Reports of Valentine’s Day have been very encouraging from all the leading branded jewelers in India. Many feel that compared to last year, they will have achieved 30-40% growth by the end of this financial year.
Some Indian bankers are still worried about the diamond business as they feel that some companies are paying high premiums for rough and still not making enough profit on polished to maintain a healthy balance sheet.
There is growing optimism that the second half will see the US economy stage a strong recovery as all the Major retailers are currently low on stock and have recently been placing good orders for polished. They however, are still reluctant to pay higher prices for polished although increases in rough would seem to suggest that an increase polished prices is inevitable.
With warm regards
Sharookh Kocheck
Chief Executive Officer, Mumbai