India Extends Deadline for Duty-Free Reimports

Polished diamonds

The Indian government has granted diamond companies extra time to ship polished goods back to the country without incurring customs duty.

At present, reimports are subject to the 7.5% levy once the diamonds have been outside India for three months. The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline by a further three months for all parcels for which the cutoff date was previously between February 1 and July 31, it said Friday.

The country’s Gem & Jewellery Export Promotion Council (GJEPC) had been lobbying for the change after the Covid-19 pandemic delayed the return of goods companies had sent overseas for grading and other services.

“The latest notification on the extension of three months on reimport of certified diamonds is a great respite for our exporters,” said GJEPC chairman Colin Shah.

Last week, the council urged the government to reduce customs duty on polished to 2.5%, arguing that the move would boost India’s status as a hub for trading and distribution of diamonds.

Source: Diamonds.net

Southstone Minerals recovers many large, high quality diamonds

Southstone Minerals

Southstone Minerals Ltd. [SML-TSXV] provided a production and operational update for December 1, 2019, to February 28, 2020 (Q2 2020), and March 1 to May 31, 2020 (Q3 2020), on its project portfolio in South Africa.

The Oena Project consists of one New Order Mining Lease located in the Northern Cape Province, South Africa. Oena is 8,800 hectares in size and covers a 4.8-km wide strip along a 15-km length of the lower Orange River. Southstone owns 43% of African Star Minerals (Pty) Limited which owns 100% of the property.

Southstone continues to focus and prioritize its efforts on the alluvial Oena diamond mine. There is currently one mining contractor on site using eight pan plants to process run-of-mine (ROM) material and one Bourevestnik (BVX) unit used for diamond recovery.

Production results for both Q1 and Q2 were impacted as a result of the mandatory closure of the mine for the period from March 26, 2020, to May 3, 2020, due to COVID-19. A total of 803.92 carats (112 diamonds) were produced, placed on tender and sold with an average price of US $1,957 per carat.

Bluedust Carats produced No. of stones US$/carat

Q2 2020 ROM 588.14 77 1,942

Q3 2020 ROM 215.78 35 2,001

The Oena diamond mine continues to produce very large and high-quality diamonds. For example, 52.62 carats (sold for US $127,975), 44.25 carats (US$243,000), and 37.03 carats ($188,962). Twenty other stones were greater than 10 carats.

Kwena Group, Republic of South Africa

Shareholders approved the disposition of the Kwena Group on May 15, 2020, and the company received final approval from the TSX Venture Exchange on the May 25, 2020. This disposition of the Kwena Group resulted in a total of 4,527,416 shares being returned to treasury and the forgiveness of outstanding indebtedness of the equivalent of $1.2-million.

Southstone agreed to settle an outstanding debt of $35,430 to two creditors by issuing 708,600 shares at $0.05 per share, subject to TSXV approval.

Source: resourceworld.com

Three exceptional diamonds sell at auctions.

A fancy vivid pink Diamond and a fancy vivid blue diamond

The first a heart shaped gem was a 5.04 carat fancy vivid blue heart modified brilliant cut diamond with VS2 clarity. The stone is mounted on a platinum ring flanked by two pear-shaped diamonds. It achieved more than $10.5 million USD, making it the top lot at the Sotheby’s auction.

The second was a 4.49 carat heart modified brilliant cut, internally flawless, fancy vivid pink diamond. It’s mounted on an 18k white gold ring flanked by pear shaped diamonds. It achieved more than $8.1 million USD. at the high end of its estimate, making it the number three lot of the sale.

The buyer or buyers for both lots is unknown at this time and there is no indication whether a single person purchased both fancy colored diamonds.

A 12.11-carat fancy intense blue diamond sold for $15.9 million
A 12.11-carat fancy intense blue diamond sold for $15.9 million CHRISTIE’S

A 12.11 carat fancy intense blue diamond sold for $15.9 million USD at Christie’s Hong Kong Magnificent Jewels auction. The internally flawless marquise shaped, brilliant cut gem was sold during a long, drawn out bidding process that was gradually narrowed down to two phone bidders, as seen through the auction house’s live stream.

It blew past its $12.3 million high estimate with a hammer price of $13.6 million which doesn’t include the buyer’s premium. The price per carat was $1.31 million.

21 Carat Colombian Emerald Sells For Nearly $1.2 Million

21.52 carat Colombian emerald

A 21.52 carat untreated Colombian emerald fetched nearly $1.2 million at Phillips Hong Kong Jewels and Jadeite July auction. The gem sold within estimates all sales include buyer’s premium. Described by the auction house as “exceptional and very rare,” it was the top lot in an otherwise mixed sale where several important lots were left on the block.

Among the items that didn’t sell was the top lot heading into the auction: a 20.25 carat internally flawless fancy vivid yellow diamond set on a diamond ring. Its estimate was $1.1 million to $1.5 million. It was withdrawn prior to the sale. Another item that was withdrawn was a necklace featuring 11 fine oval jadeite cabochons surrounded by brilliant cut diamonds and linked by marquise and pear shaped diamonds set on 18k white gold. Its estimate was $808,000- $1 million.

In addition, a very fine pair of fine jadeite cabochon earrings set on white gold did make it to the block but failed to find a bidder. Its estimate was $750,000 to $1.1 million.

Harry Winston 12.55-carat diamond ring sold for $1.1 million
Harry Winston 12.55 carat diamond ring sold for $1.1 million PHILLIPS

An important signed jewel that failed to attract a buyer was a one of a kind Peacock bangle by Chopard. The elaborate high jewelry creation is notable for its resplendent tail feathers that wrap around the wearer’s wrist. This design, marked by numerous details, is adorned with 7,500 gems that required hundreds of hours of study and work. Its estimate was $230,000 to $280,000.

Items that did do well in the sale held on July 8 at the JW Marriott Hong Kong were signed Harry Winston jewels and emeralds, such as the top lot.

Harry Winston Colombian emerald and diamond ear clips sold for $370,960
Harry Winston Colombian emerald and diamond ear clips sold for $370,960 PHILLIPS

The number two lot in the sale was a a 12.55 carat rectangular step-cut diamond set on a vintage platinum ring, 1953. The D/IF type IIa diamond sold for $1.1 million, within estimates. In addition, a “very fine” pair of 4.52 and 4.44 carat step-cut Colombian “no oil” emerald and diamond ear clips from the famed New York jeweler sold for $370,960, within estimates. A pair of classic diamond cluster ear clips totaling 21.63 carats sold for $209,673, within estimates.

A 6.38 carat cushion-shaped emerald mounted on a platinum and 18k gold ring surrounded by diamonds by Bulgari fetched $403,218, within estimates.

Karen Suen conch pearl, pink diamond and diamond necklace sold for $217,737
Karen Suen conch pearl, pink diamond and diamond necklace sold for $217,737 PHILLIPS

Three jewels featuring gem quality conch pearls by contemporary Hong Kong jewelry designer, Karen Suen, were part of the sale. One of the three jewels, a conch pearl, pink diamond and diamond necklace fetched $217,737, within estimates. The other pieces, a pair of earrings and a ring made of conch pearls and diamonds failed to sell.

Source: Anthony DeMarco Forbes

Over 4,000 diamonds seized in Lucapa

Lucapa rough diamonds

At least 4,429 unevaluated diamond stones in the possession of a French citizen were seized last Sunday in Lucapa, eastern Lunda Norte province, National Police have said. ,

The detention was a result of a police investigation following several tip offs on clandestine sale and purchase of diamonds in the residence of the French citizen, said the police note reached Angop.

The operation also led to the seizure of USD 3,350 euros, two scales, three magnifying glasses, four diamond shovels. 

The transparency operation which was extended to the maritime coast in March 2019 aimed to curb diamond traffic and illegal migration.

The French citizen has been detained and will be forwarded to the Public Ministry Office in the next days.    

From January to May this year 125 diamond tones (still to be rated), USD 1,700 and 55,000 kwanzas were seized.

Source: einnews

Belgium’s Diamond Shipments Drop Further

The Diamond Office in Antwerp. (Antwerp World Diamond Centre)

Belgium’s diamond trade slowed in June, with polished exports down 44% year on year to $469 million, according to data from the Antwerp World Diamond Centre (AWDC). However, the rate of decline eased following heavier drops in April and May, when the global industry shut due to the coronavirus. US orders rose 4% to $173 million in June, indicating a gradual recovery as the important retail market reopened.

Belgium Trade Data for June 2020
 June 2020Year-on-year change
   
Polished exports$469M-44%
Polished imports$350M-66%
Net polished exports$120M2019: Deficit of $185M
Rough imports$351M-48%
Rough exports$237M-71%
Net rough imports$114M2019: Deficit of $125M
Net diamond account$6M2019: Deficit of $60M
   
Polished exports: volume146,350 carats-60%
Average price of polished exports$3,206/carat40%
   
 1H 2020Year-on-year change
   
Polished exports$2.49B-58%
Polished imports$2.51B-59%
Net polished exports-$14MDeficit decreased 95%
Rough imports$2.75B-37%
Rough exports$2.25B-55%
Net rough imports$494M2019: Deficit of $621M
Net diamond account-$508M2019: Surplus of $360M
   
Polished exports: volume1.2 million carats-46%
Average price of polished exports$2,097/carat-21%


Source: Antwerp World Diamond Centre; Rapaport archives

About the data: Belgium is usually a net exporter of polished diamonds. As such, net polished exports — representing polished exports minus polished imports — will normally be a positive number. The nation is also a net exporter of rough. While Antwerp is home to some high-value manufacturing, its main role in the market is as a facilitator of rough-diamond trading, with companies from around the world coming to the city to buy rough. The net diamond account is total rough and polished exports minus total imports. It is Belgium’s diamond trade balance, and shows the added value the nation creates by exporting rough or manufacturing it into polished.

Source: Diamonds.net

Two Fancy Colored Heart Shaped Diamonds

A fancy vivid pink Diamond and a fancy vivid blue diamond

Two hearts, one blue, the other pink, will appear at Sotheby’s Hong Kong Magnificent Jewels auction as if they were always meant to be together. They will be sold separately during the July 10 sale at the Hong Kong Convention & Exhibition Centre. Combined, their high estimate is $18.5 million.

The first is a 5.04 carat fancy vivid blue heart modified brilliant-cut diamond. The gem has a VS2 clarity grade, according to its lab report. The heart-shaped gem is mounted on a platinum ring flanked by two pear-shaped diamonds. Its estimate is between $7.7 million and $9.7 million.

Its would-be partner is a 4.49-carat heart modified brilliant-cut, internally flawless, fancy vivid pink diamond. It’s mounted on an 18k white gold ring flanked by pear-shaped diamonds. Its estimate is between $7.5 million and $8.8 million.

India Extends Import Curbs as Surat Shuts Again

Melee grading at De Beers Group

Indian trade bodies have recommended continued limits on rough-diamond imports in July, with a fresh weeklong shutdown of the Surat cutting sector adding to concerns about the market.

The Gem & Jewellery Export Promotion Council (GJEPC) and four other organizations have called for the industry to avoid shipping rough into the country between July 10 and 31. They are giving companies a window of July 1 to 9 in which to import goods to keep factories operational, and will review the policy in the final week of the month, the groups said in a letter to members Tuesday.

“Over [the] last few weeks, manufacturing operations have commenced, albeit under several constraints because of issues [such as social distancing],” they noted. “In view of this, it was generally felt that some new raw materials would be needed for continuing operations and keeping the labor force employed.”

Weak polished demand during the coronavirus pandemic led to fears of a diamond oversupply, prompting the GJEPC, the Bharat Diamond Bourse, the Mumbai Diamond Merchants Association, the Surat Diamond Bourse and the Surat Diamond Association to call for a rough-import pause for a month from May 15. They later delayed it to June 1 so companies could complete outstanding shipments.

These initial curbs have helped reduce stockpiles and manage cash flow, while miners have also offered support by being flexible with contract clients’ purchasing obligations, the groups added. The GJEPC will write to the large rough producers, urging them to continue that policy to avoid a collapse in the value of inventory, the letter stated.

However, the industry must still “proceed with great caution,” the organizations warned following a Saturday meeting with trade members.

“It is difficult to say when the Indian diamond industry will be fully operational,” said GJEPC chairman Colin Shah. “The industry [has] resumed manufacturing activities in a limited way, while maintaining all the stringent safety norms. But these are unprecedented times.”

The trade must, therefore, strike a delicate balance between continuing operations and maintaining workers’ livelihoods on the one hand, and ensuring health and safety on the other, Shah added.

Surat closure

The sector suffered a setback on Monday when the Surat Municipal Corporation ordered the closure of all diamond-manufacturing units in the city for seven days, according to a note the Surat Diamond Association released on Tuesday. More than 700 diamond workers in Surat have tested positive for Covid-19 in recent weeks, with the polishing industry becoming a local virus hot spot, the Deccan Herald reported.

Diamond cutting in India has struggled to restart, even after the government relaxed the lockdown rules it introduced in March to contain the coronavirus. The Surat sector gradually reopened in May following a full closure, with the government allowing 50% of workers in factories and 33% in offices. But several outbreaks at manufacturing units have forced companies to shut again and send workers into quarantine.

Local media have carried reports of staff members attending work while unwell, with communal meals and the use of air-conditioning intensifying the risk of infection.

China dispute

Adding to the troubles, a diplomatic rift with Beijing has led to unsold memo goods being held up at Indian customs on their return from Hong Kong and China, traders told Rapaport News. The Indian government has reportedly told customs officials to check all imports from China following a June 15 military clash in a disputed Himalayan border region that killed 20 Indian soldiers and caused an unknown number of Chinese casualties.

Companies might need to route goods via other locations such as Dubai at extra cost to avoid the bottleneck, an executive at a diamond manufacturer explained.

“We have been instructed [by customs agents] not to export anything, specifically diamonds, from Hong Kong to India, as customs have completely refused to release those parcels,” he said. “I see a problem escalating, and if this situation doesn’t get under control in the next two or three weeks, there definitely will be an issue.”

Source: Diamonds.net

A 28 carat emerald shape type 2A diamond became the most expensive auctioned online

28.86 carat diamond ring

On Tuesday, Christie’s auctioned off the most expensive jewel ever sold on an online auction. The 28.86 carat diamond sold for $US2,115,000 million.
One of the rarest diamonds in the world, the Type 11a diamond is formed from pure carbon.

“The spectacular 28.86 carat D colour diamond received immediate attention upon its announcement,” Christie’s Head of Jewellery Rahul Kadakia said in a statement. “The stone possesses a transparency and purity which can only be found in the world’s finest diamonds.

The sale of this exceptional stone established the record for a jewel sold in an online only auction, demonstrating greater client confidence in Christie’s digital ability and online sale platform.”

The sale was the final day of Christie’s Jewels Online sale.

Buyers Snub De Beers and Alrosa over High Prices

Rough diamonds

De Beers and Alrosa continued to see rock-bottom sales in June as buyers rejected the miners’ high rough prices in favor of cheaper goods from smaller suppliers.

“[The major miners] want to hold on to prices, so people don’t see any [incentive] to buy because it’s difficult to sell and make money,” a sightholder told Rapaport News. “[Manufacturers and dealers] are already sitting on large inventories of polished and rough.”

The two largest producers have maintained their prices at pre-coronavirus levels, while other miners holding tenders in Antwerp have sold at prices 15% to 25% lower than in February, an Alrosa client observed. Even the smaller producers’ prices were inflated, he explained, as they were serving customers seeking specific items in small quantities.

If De Beers or Alrosa were to put their monthly allocations on the open market, they would fetch prices up to 30% below their current levels, the dealer estimated. “There is no appetite for rough, as factories [in India] have been operating on a very, very small capacity for a month,” he stressed.

“Sales of polished have not improved dramatically, and stocks are still there,” a sightholder added. “Factories have no reason to open, so why would we buy rough?”

De Beers held its June sight last week, with limited viewings in Antwerp instead of at the usual location in Gaborone, Botswana, due to Covid-19 travel restrictions. The sight had an estimated value of around $40 million, according to a source with knowledge of the sale. De Beers hasn’t released sales data since its February sight, and is scheduled to publish its earnings for the first half of the year on July 30.

Alrosa also struggled to attract buyers to its latest trading session, which ended June 15, after reporting record low revenues in April and May. The Russian miner is due to publish its June data on July 10.

Kick-starting sales

Rough buyers have sensed an increased urgency for both De Beers and Alrosa to increase revenue, after the miners allowed 100% deferrals of purchase allocations during the coronavirus crisis. They introduced that flexibility to protect prices and avoid flooding the market with goods, but now customers are unwilling to resume buying unless value improves. Five Alrosa clients have already given up their statuses as Alrosa contract customers since March, perceiving pressure to make purchases.

To drum up interest, Alrosa is considering holding contract sales outside Moscow for its July session, with Antwerp the likely venue, and is weighing up whether to continue its deferrals policy.

“Being committed to the prudent sales policy, in subsequent trading sessions of the year we will use all available instruments to maintain supply-and-demand balance and help to normalize cutters’ level of inventories,” an Alrosa spokesperson said. De Beers declined to comment.

Most manufacturers in India have enough rough to keep their factories going until August, and are only buying if they have specific shortages, dealers explained. That has boosted sales at smaller miners that are in need of liquidity and have sold low volumes at reduced prices to cutters looking to fill limited inventory gaps.

The recent increase in Covid-19 cases in Surat has added to the predicament, dealers asserted. The Indian polishing industry hasn’t returned to consistent operations since the government allowed it to reopen last month, with several companies forced into temporary shutdowns following virus outbreaks.

“Most [Alrosa] clients have the same attitude as me — they don’t need the goods, and they’re not ready even to look at the goods at this price,” a dealer said.

Gradual release

However, deep and sudden discounts on rough could damage the entire market, sightholders acknowledged. As such, they only foresee De Beers and Alrosa reducing prices when the market recovers, which the buyers expect to happen in the fall, assuming retail stores and trading centers continue to reopen. Only then will the largest miners gradually release their stockpiles, dealers predicted.

“Let [the goods] come in very small quantities, so in the meantime overall inventory will slowly decline, the industry will generate money, and banks will feel comfortable,” a dealer argued. “We will start our business from September onward, when the Christmas season begins.”

Indeed, buyers will have to return to De Beers and Alrosa if they need more significant volumes when the market improves.

“Maybe by then we will have more of a balance of supply and demand, and maybe we’ll have more confidence to buy at certain prices that we don’t have now,” a sightholder said.

Source: Diamonds.net