News from Mumbai
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13th November 2009
Dear Friends
When you compare last year's post-Diwali mood to this year, the turnaround in confidence is amazing.
The Mumbai market has had a robust re-opening after Diwali and all signs point to a strong season ahead.
Prior to Diwali, polished was moving well in India, Hong Kong and China. However, what is lifting sentiment, is that slowly but surely, buying has begun in the most important consuming market of the world, USA.
American Majors have been placing orders for loose polished and jewellery sourced from India. In fact, after a long, long time, there actually is a scarcity of polished in the local market, especially of SI2 to I4 which is moving very fast. Polished stocks are also reduced in many areas of -2, -4, Pique Pointers, Caraters, certain shades of Colour and Brown and Princess.
Demand for rough has been very strong both in Mumbai and Antwerp. During the DTC Sight Week, premiums of the majority of DTC articles were stronger than the previous month. Trade analysts estimate that there could be rough worth around $750 Million in Antwerp including the DTC sales this Sight.
Production has commenced in Gujarat, but is still around 50% of capacity. This is because many workers returned to the factories, collected their bonus cheques and went back to their villages for the ongoing marriage season.
Presently, all the Indian Sightholders are of the view that DTC should sell more ex plan rough, especially in December as it is an important Sight keeping in mind that while current polished stocks are low, the polished produced from the December Sight Boxes will be ready in time for the Chinese New Year and Valentine's Day in February 2010. (See Economic Times article)
With warm regards
Sharookh Kocheck
Chief Executive Officer, Mumbai