<img src="http://www.diamonds.net/news/Files/Gallery/IIJS3.JPG" border="1" alt="" hspace="10" vspace="10" width="300" height="224" align="right" />Strong business  activity continued during the weekend at the India International  Jewellery Show (IIJS) in Mumbai even if buyers were showing some  resistance on prices. Most exhibitors that spoke with <em>Rapaport News</em> were satisfied that the show at least met their expectations.

“It  has been a very good show and the traffic was better than expected,”  said Alain Spira, president and founder of AS Diamonds, which  specializes in 1 to 30 carat, D-M, SI+ stones with Triple-X cut. “Prices  were stronger on our side but you still have to be a bit flexible.” He  added that the company registered an increase in sales compared to last  year’s event.

Spokespersons  for the Gem &amp; Jewellery Export Promotion Council (GJEPC), which  organizes the event, reported that IIJS Mumbai would easily achieve its  goal of 30,000 visitors and generating about $858 million (INR 40  billion) worth of business.

<strong>What’s Hot?</strong>

Spira  noted that Indian retailers are increasingly looking for larger, better  quality goods. Others agreed and 3 carat, I-K, VS2 stones emerged as  the hot item at the show. Exhibitors also reported good demand for E-F  colors although buyers appeared less willing to negotiate up on these  goods. Additional demand remains for dossiers, G-I, VS-SI items.

Exhibitors  also reported strong activity in fancy shapes with emerald cuts in 0.40  to 0.70 carat sizes proving most popular and there has developed some  shortages in these goods. Pear shapes and princess cuts also generated  interest among buyers.

Anil Shah, a director at Venus Jewel, a  manufacturer which also has its own grading mechanism, noted that Indian  demand ranges across all categories of diamonds which differentiates it  from other emerging markets where demand is more specific.

Emanuel  Namdar, owner of SN Asia, an Israel-based diamond manufacturer, added  that the Indian diamond consumer market is unique in that it does not  rely so much on the classic engagement ring item, but is supported more  by the high-end jewelry.

Namdar explained that it was difficult  for outsiders to come in and make India their main market. “You have to  sell items that fit your company and find your niche,” he said. “Hardly  anything is not sold locally.”

<strong>Serious Buyers</strong>

While  activity during the opening days of the show were characterized by a  lot of price comparing among local buyers and some sales to foreign  visitors, more serious locals appeared to be doing business over the  weekend.

“There have been many interested and knowledgeable  buyers from all over India at the show,” said Siripal Jain, a manager at  manufacturer AMC Diamonds India. “They were looking for the right  supplier before deciding whether to buy or not. That is a sign of a  healthy market.”

Jain stressed that buyers have been very price  sensitive and focused on good quality make diamonds. Others agreed that  almost everyone at the show was looking for certified diamonds, and in  particular Triple-X cuts.

Namdar noted that there didn’t appear  to be shortages in India and that everything is available if the price  is right. “If anything, there is an oversupply and the show cases are  full even though sales were made,” he said. “So it doesn’t seem that  there is room for prices to go up.”

In general, however, traders appeared satisfied that there was currently the right balance of supply in the market for rounds.

<strong>Price Gaps</strong>

One  Israeli vendor noted that while the larger items are in high demand,  buyers were tough on prices in these categories. “Smalls are going well  and are easier to sell in terms of prices," he added.

Despite the  steady traffic and trading volumes there remains notable gaps on price  between buyers and sellers. “Rough prices have increased and so polished  sellers need to be firm,” said Bhavesh Barmecha, a manager at Impex  Diamonds. He added that while customers understand this they haven’t yet  internalized the market trend and price constraints are still very  evident.

International buyers, mainly from China, were focused on carat sizes in better colors and qualities.

Some  noted that the foreign delegations tend to be more willing to close the  deal and prefer dealing with larger, well known companies. “They do  less shopping around because they want to deal with a reliable and well  known supplier,” said one Indian manufacturer. One Russian buyer  stressed that prices were too high at the show.

<strong>Diwali &amp; Beyond</strong>

Many  are gauging the show as a sign of a strong run up to the Diwali season,  which begins on November 5, especially after the slow summer season.  “India won’t be quiet from now because jewelry is selling and so that  filters down to [the diamond trade],” said a representative from Tache  Diamonds.

Another industry insider added that even after Diwali, the market is very hopeful for the Christmas season abroad.

Shah  agreed but noted that India was carrying the global market at the  moment. “Other markets are slow and the reality in the U.S. is not as  positive as the reports lead you to believe,” he explained. “If India is  stable, it has an effect on the global market.”

Ref: <a href="http://www.diamonds.net/news/NewsItem.aspx?ArticleID=32229" target="_blank">Diamonds.net</a>