Hong Kong Riots Cast Cloud over Show

Diamond traders have raised concerns ahead of next month’s Hong Kong Jewellery & Gem Fair, as mass protests have caused chaos and dented local demand.

The show will still take place as planned, organizers Informa Markets confirmed to Rapaport News Friday. However, access to the venues is currently difficult, according to dealers, who are pinning their hopes on unrest in the city receding by the time the event begins on September 16.

“You don’t know where to go in Hong Kong right now,” said Vincent Yiu, director of Hong Kong-based Brilliant Trading Company, which plans to exhibit at the fair. “There are protesters literally in all areas. If it happened today, I don’t think the show would be good.” The riots are likely to calm down when protesters return to school and university in September, he added.

Anti-government demonstrations began in June, and have developed into large-scale civil disobedience across the city center, including near the show venues.

Hong Kong International Airport suspended departures for periods of Monday and Tuesday, after campaigners held a sit-in lasting several days. The site, as well as being the main entry point for visitors, is located next to AsiaWorld-Expo, where the loose-diamond exhibition will run from September 16 to 20.

Activists and police officers have also clashed near the Hong Kong Convention & Exhibition Centre in the Wan Chai area, which will host the jewelry section of the show from September 18 to 22.

“The impact [of the protests] is very, very negative,” said Ephraim Zion, founder of Hong Kong-based high-end jeweler Dehres. “Sentiment is very, very bad. We don’t know what’s going to happen. I’ve already been informed by a few clients that they’re not coming [to the exhibition]. The show will happen no matter what, [but] I expect very few people to come.”

Zion said he wouldn’t attend the show if it were today, but expects the Chinese People’s Liberation Army to take action if the protests continue for much longer. Meanwhile, sales at his domestic retail clients have “plummeted,” as the unrest has forced stores to shut, Zion added. “There is some demand from overseas, but locally, it’s dead,” he explained.

The riots have disrupted the municipality’s Mass Transit Railway (MTR), with videos appearing on the internet showing violence inside underground stations. The US State Department raised its travel warning for Hong Kong to level two last week, urging visitors to “exercise increased caution” due to civil unrest.

“We recognize the challenges we face given the recent public incidents in Hong Kong, but rest assured we have prepared — and are constantly updating and adjusting — a comprehensive contingency plan in partnership and in close coordination with all industry stakeholders,” a spokesperson for Informa said.

The procedures cover “virtually every scenario during the different phases of our show,” explained Informa, which has operated the event since acquiring UBM, the former owner, last year. The plans were already in place for the June edition of the fair, a smaller event, which “went off without a hitch,” the company added.

The September exhibition, a key event for trading goods ahead of the holiday season, comes amid generally weak consumer demand in greater China. Local jewelry sales have declined due to Beijing’s tariff dispute with the US, with the protests further fueling the downturn. The Chinese yuan has depreciated 2.6% against the Hong Kong dollar since January 1, reducing the spending power of tourists visiting from the mainland.

“The last three quarters [have] been quite challenging for the industry, and this is the very reason why exhibitors, buyers and stakeholders across the entire business spectrum are fully engaged to get the most out of the September fair,” Informa added.

Source: DCLA

Hong Kong Riots Cast Cloud over Show

Diamond traders have raised concerns ahead of next month’s Hong Kong Jewellery & Gem Fair, as mass protests have caused chaos and dented local demand.

The show will still take place as planned, organizers Informa Markets confirmed to Rapaport News Friday. However, access to the venues is currently difficult, according to dealers, who are pinning their hopes on unrest in the city receding by the time the event begins on September 16.

“You don’t know where to go in Hong Kong right now,” said Vincent Yiu, director of Hong Kong-based Brilliant Trading Company, which plans to exhibit at the fair. “There are protesters literally in all areas. If it happened today, I don’t think the show would be good.” The riots are likely to calm down when protesters return to school and university in September, he added.

Anti-government demonstrations began in June, and have developed into large-scale civil disobedience across the city center, including near the show venues.

Hong Kong International Airport suspended departures for periods of Monday and Tuesday, after campaigners held a sit-in lasting several days. The site, as well as being the main entry point for visitors, is located next to AsiaWorld-Expo, where the loose-diamond exhibition will run from September 16 to 20.

Activists and police officers have also clashed near the Hong Kong Convention & Exhibition Centre in the Wan Chai area, which will host the jewelry section of the show from September 18 to 22.

“The impact [of the protests] is very, very negative,” said Ephraim Zion, founder of Hong Kong-based high-end jeweler Dehres. “Sentiment is very, very bad. We don’t know what’s going to happen. I’ve already been informed by a few clients that they’re not coming [to the exhibition]. The show will happen no matter what, [but] I expect very few people to come.”

Zion said he wouldn’t attend the show if it were today, but expects the Chinese People’s Liberation Army to take action if the protests continue for much longer. Meanwhile, sales at his domestic retail clients have “plummeted,” as the unrest has forced stores to shut, Zion added. “There is some demand from overseas, but locally, it’s dead,” he explained.

The riots have disrupted the municipality’s Mass Transit Railway (MTR), with videos appearing on the internet showing violence inside underground stations. The US State Department raised its travel warning for Hong Kong to level two last week, urging visitors to “exercise increased caution” due to civil unrest.

“We recognize the challenges we face given the recent public incidents in Hong Kong, but rest assured we have prepared — and are constantly updating and adjusting — a comprehensive contingency plan in partnership and in close coordination with all industry stakeholders,” a spokesperson for Informa said.

The procedures cover “virtually every scenario during the different phases of our show,” explained Informa, which has operated the event since acquiring UBM, the former owner, last year. The plans were already in place for the June edition of the fair, a smaller event, which “went off without a hitch,” the company added.

The September exhibition, a key event for trading goods ahead of the holiday season, comes amid generally weak consumer demand in greater China. Local jewelry sales have declined due to Beijing’s tariff dispute with the US, with the protests further fueling the downturn. The Chinese yuan has depreciated 2.6% against the Hong Kong dollar since January 1, reducing the spending power of tourists visiting from the mainland.

“The last three quarters [have] been quite challenging for the industry, and this is the very reason why exhibitors, buyers and stakeholders across the entire business spectrum are fully engaged to get the most out of the September fair,” Informa added.

Source: DCLA

Travis Scott gifts Kylie Jenner insane diamond necklace for her 22nd birthday

To say that Travis Scott is supportive of his billionaire girlfriend would be an understatement.

The rapper, 28, is so impressed with Kylie Jenner’s Kylie Cosmetics empire that he gifted her an insane tribute to the company for her 22nd birthday: an over-the-top pink and white diamond necklace featuring her company’s dripping lips logo.

The Cuban link chain was designed by Scott’s go-to jeweler, Eliantte & Co. It not only features hundreds of pavé diamonds all over, but pear-shaped stones literally dripping off the links.

And inside the larger-than-life lips? Chunky emerald-cut diamond “teeth.”

Jenner posted a video of the extravagant gift to her Instagram Stories, pairing it with a pink feathered minidress and, later, custom-made sweatpants and a T-shirt.

The lavish necklace wasn’t Scott’s only gift to Jenner for her 22nd. One week before jetting off to Portofino, Italy, with their daughter, Stormi Webster, and other members of the Kardashian family, the “Butterfly Effect” artist covered Jenner’s home in red roses and blanketed the floor with petals.

“Happy Birthday!!! We’re just getting started. Love you!!!!,” his note read.

Scott’s birthday Instagram post to Jenner included pictures of them together and with baby Stormi. He captioned it: “Happy Bday Wifey everyday I watch u grow more into this amazing superhuman everyday is the best the day with u here may God continue shine on you. Happy fcking Bday love ya !!!”

Jenner has been celebrating her birthday with various dinners and parties around Italy, and the family is staying on a $250 million yacht once owned by infamous Malaysian fugitive Jho Low. It includes a Turkish bath, pool, beauty salon, movie theater, elevators, gym and an outdoor bar.

Perhaps Scott’s present was inspired by Jenner’s money-themed Kylie Cosmetics birthday collection?

Source: DCLA

Travis Scott gifts Kylie Jenner insane diamond necklace for her 22nd birthday

To say that Travis Scott is supportive of his billionaire girlfriend would be an understatement.

The rapper, 28, is so impressed with Kylie Jenner’s Kylie Cosmetics empire that he gifted her an insane tribute to the company for her 22nd birthday: an over-the-top pink and white diamond necklace featuring her company’s dripping lips logo.

The Cuban link chain was designed by Scott’s go-to jeweler, Eliantte & Co. It not only features hundreds of pavé diamonds all over, but pear-shaped stones literally dripping off the links.

And inside the larger-than-life lips? Chunky emerald-cut diamond “teeth.”

Jenner posted a video of the extravagant gift to her Instagram Stories, pairing it with a pink feathered minidress and, later, custom-made sweatpants and a T-shirt.

The lavish necklace wasn’t Scott’s only gift to Jenner for her 22nd. One week before jetting off to Portofino, Italy, with their daughter, Stormi Webster, and other members of the Kardashian family, the “Butterfly Effect” artist covered Jenner’s home in red roses and blanketed the floor with petals.

“Happy Birthday!!! We’re just getting started. Love you!!!!,” his note read.

Scott’s birthday Instagram post to Jenner included pictures of them together and with baby Stormi. He captioned it: “Happy Bday Wifey everyday I watch u grow more into this amazing superhuman everyday is the best the day with u here may God continue shine on you. Happy fcking Bday love ya !!!”

Jenner has been celebrating her birthday with various dinners and parties around Italy, and the family is staying on a $250 million yacht once owned by infamous Malaysian fugitive Jho Low. It includes a Turkish bath, pool, beauty salon, movie theater, elevators, gym and an outdoor bar.

Perhaps Scott’s present was inspired by Jenner’s money-themed Kylie Cosmetics birthday collection?

Source: DCLA

World’s diamond polishing hub loses its shine as demand plummets

The world’s diamond polishing hub, Surat, is staring at a potential crisis as demand is lowest since 2008 and around 100,000 people have lost work since December 2018, according to Surat Diamond Association.

Several industry leaders and a senior government functionary said the current slowdown began in November 2018 when demand for diamond jewellery went down, has gone from bad to worse on account of global factors, the high price of rough diamonds, and a liquidity crunch on account of banks not lending for a prolonged period.

The Surat diamond industry accounts for 80% of the world’s polished stones with an annual turnover of about Rs 1 lakh crore and employees around 700,000 people, according to the association and Gujarat Diamond Workers Union. “Ten years back, if the polished diamonds prices were down by 25%, then that of rough stones was down by 50%. So the availability of raw material at cheaper rates allowed Surat traders to make a comeback in some time,” says Savji Dholakia, promoter of one of Surat’s biggest diamond manufacturing and exporting units, Hari Krishna Exports.

“For the first time in the over five-decade history of this industry, the prices of rough diamonds have remained inflated for almost a year. My sense is that if there is no correction in the prices soon, the Surat diamond industry may have to go through its toughest patch in which factories having strong finances will survive,” Dholakia added.

Dinesh Navadia, chairman of the Gems and Jewellery Export Promotion Council (GJEPC) said the United States-China trade war, and devaluation of Yuan has further fuelled the crisis in recent weeks. “China exports over 42% diamonds polished by Surat, and it further exports jewellery to US. In turn, the US accounts for 40% Chinese diamond jewellery. But prevailing trade war between two superpowers has disturbed this equation, leading to sluggish demand,’’ he said.

According to the GJEPC’s April-July report, the rough diamond import compared to last year in the same period was down 28%. “From ~42,247 crore in April-July 2018, import of rough diamond is down to ~31,266 crore this year. Similarly, export of polished diamond has declined by 17% year-on-year for the April-July period,” the report said.

Nitin Patel, deputy chief minister of Gujarat, admitted that the industry was going through a rough patch and the government was trying to provide all possible help. “We have several round of talks with the industry and are providing whatever assistance we can,” he said. A Gujarat government official privy with the discussions said that diamond traders want exemption from import duty on gold and capital gains tax in addition to easy mode of finance to tide over the current. “Most of the issues are related to Central government,” he said.

The diamond traders say they are also suffering as banks have cut down on lending in the current financial year because of rising non-performing assets (NPAs). While the big factories have managed to stay afloat by decreasing their production well below the capacity, the smaller players have been hit hard, Navadia said.

“Nearly 30 % of the 4,000-odd small and medium factories operating in Surat have gradually downed the shutters after the Diwali vacation last year,” Bhavesh Tank, vice-president of the Gujarat Diamond Workers’ Union. Workers, a majority of whom are from parched rural areas of Saurashtra, have been finding it difficult to sustain their livelihoods. “Joblessness so far has affected average performer. The big firms have been trying to retain only highly skilled workers,’’ said Babu Gujarati, president of the Surat Diamond Association (SDA).

Govind Adhiya, a 30-year-old diamond polisher, is ready to pack his bags and go back to his hometown of Rajula in Saurashtra. The resident of Varachha, a neighbourhood of small lanes and cramped bylanes for polishers, has been without work for nearly two months and his future doesn’t look any brighter.

“In 2008, during the time of global recession, I had just finished my training in diamond polishing and found myself jobless. I had to go back to my native home. This time it is a double whammy as now I also have a family to support,” said Adhiya.

He was among 250 others employees of small diamond polishing factories, who were first asked to go home on summer vacation and were never called back to work. “Unexpectedly, they [factory owners] announced summer vacation. And since I have not heard from by employer’’, said Rakesh Patel, another worker at the diamond polishing unit in Surat.

Jignesh Chotai and several others who worked in two-shifts are now doing only one shift. “In one shift also, there is not too much of work. I do not know how I would pay school fees of my two kids if things don’t improve,’’ Chotai said.

“About one lakh [100,000 of total 700,000 workers] have been rendered jobless since last Diwali,’’ Tank said. “Most of them [who have lost jobs] used to take up polishing work from small factories on contract basis. Most of these factories have also closed down.” To prevent a repeat of the 2008 meltdown, Navadia said this time the big firms are trying to distribute work among workers and are trying to minimise layoffs. “Firms have also lowered the salaries to minimise job losses,” he said.

Source: DCLA

World’s diamond polishing hub loses its shine as demand plummets

The world’s diamond polishing hub, Surat, is staring at a potential crisis as demand is lowest since 2008 and around 100,000 people have lost work since December 2018, according to Surat Diamond Association.

Several industry leaders and a senior government functionary said the current slowdown began in November 2018 when demand for diamond jewellery went down, has gone from bad to worse on account of global factors, the high price of rough diamonds, and a liquidity crunch on account of banks not lending for a prolonged period.

The Surat diamond industry accounts for 80% of the world’s polished stones with an annual turnover of about Rs 1 lakh crore and employees around 700,000 people, according to the association and Gujarat Diamond Workers Union. “Ten years back, if the polished diamonds prices were down by 25%, then that of rough stones was down by 50%. So the availability of raw material at cheaper rates allowed Surat traders to make a comeback in some time,” says Savji Dholakia, promoter of one of Surat’s biggest diamond manufacturing and exporting units, Hari Krishna Exports.

“For the first time in the over five-decade history of this industry, the prices of rough diamonds have remained inflated for almost a year. My sense is that if there is no correction in the prices soon, the Surat diamond industry may have to go through its toughest patch in which factories having strong finances will survive,” Dholakia added.

Dinesh Navadia, chairman of the Gems and Jewellery Export Promotion Council (GJEPC) said the United States-China trade war, and devaluation of Yuan has further fuelled the crisis in recent weeks. “China exports over 42% diamonds polished by Surat, and it further exports jewellery to US. In turn, the US accounts for 40% Chinese diamond jewellery. But prevailing trade war between two superpowers has disturbed this equation, leading to sluggish demand,’’ he said.

According to the GJEPC’s April-July report, the rough diamond import compared to last year in the same period was down 28%. “From ~42,247 crore in April-July 2018, import of rough diamond is down to ~31,266 crore this year. Similarly, export of polished diamond has declined by 17% year-on-year for the April-July period,” the report said.

Nitin Patel, deputy chief minister of Gujarat, admitted that the industry was going through a rough patch and the government was trying to provide all possible help. “We have several round of talks with the industry and are providing whatever assistance we can,” he said. A Gujarat government official privy with the discussions said that diamond traders want exemption from import duty on gold and capital gains tax in addition to easy mode of finance to tide over the current. “Most of the issues are related to Central government,” he said.

The diamond traders say they are also suffering as banks have cut down on lending in the current financial year because of rising non-performing assets (NPAs). While the big factories have managed to stay afloat by decreasing their production well below the capacity, the smaller players have been hit hard, Navadia said.

“Nearly 30 % of the 4,000-odd small and medium factories operating in Surat have gradually downed the shutters after the Diwali vacation last year,” Bhavesh Tank, vice-president of the Gujarat Diamond Workers’ Union. Workers, a majority of whom are from parched rural areas of Saurashtra, have been finding it difficult to sustain their livelihoods. “Joblessness so far has affected average performer. The big firms have been trying to retain only highly skilled workers,’’ said Babu Gujarati, president of the Surat Diamond Association (SDA).

Govind Adhiya, a 30-year-old diamond polisher, is ready to pack his bags and go back to his hometown of Rajula in Saurashtra. The resident of Varachha, a neighbourhood of small lanes and cramped bylanes for polishers, has been without work for nearly two months and his future doesn’t look any brighter.

“In 2008, during the time of global recession, I had just finished my training in diamond polishing and found myself jobless. I had to go back to my native home. This time it is a double whammy as now I also have a family to support,” said Adhiya.

He was among 250 others employees of small diamond polishing factories, who were first asked to go home on summer vacation and were never called back to work. “Unexpectedly, they [factory owners] announced summer vacation. And since I have not heard from by employer’’, said Rakesh Patel, another worker at the diamond polishing unit in Surat.

Jignesh Chotai and several others who worked in two-shifts are now doing only one shift. “In one shift also, there is not too much of work. I do not know how I would pay school fees of my two kids if things don’t improve,’’ Chotai said.

“About one lakh [100,000 of total 700,000 workers] have been rendered jobless since last Diwali,’’ Tank said. “Most of them [who have lost jobs] used to take up polishing work from small factories on contract basis. Most of these factories have also closed down.” To prevent a repeat of the 2008 meltdown, Navadia said this time the big firms are trying to distribute work among workers and are trying to minimise layoffs. “Firms have also lowered the salaries to minimise job losses,” he said.

Source: DCLA

Alrosa Sales Hit Lowest Level on Record

Alrosa’s July sales slumped to their lowest point in three years, as weakness in the rough market continued to impact demand.

The Russian miner’s total sales slid 50% to $170.5 million for the month, it reported Friday. Rough-diamond sales, which account for the bulk of the company’s revenue, dropped 51% to $164.6 million. Polished sales increased 11% to $5.9 million. Previously, the lowest monthly total was $176.3 million in December 2016, according to Rapaport records. Alrosa has released its results every month since August 2016.

The decline resulted from an oversupply in the midstream, as manufacturers were unable to offload stones due to weak demand. “This factor was exacerbated by [the] low availability of credit facilities…in the midstream [and] trade tensions between [the] US and China,” explained Evgeny Agureev, director of Alrosa’s United Selling Organization.

Sales for the first seven months of the year fell 35% to $1.98 billion, with rough sales down 34% to $1.95 billion. Revenue from polished diamonds plunged 40% to $33.1 million for the January-to-July period.

However, Alrosa predicted an improvement in the situation as inventories even out.

“Recent statistics on the net imports of rough diamonds to India and net export of polished diamonds [out of that country] suggest that the diamond market is gradually coming back to supply-demand balance,” Agureev added.

Source: DCLA