Diamond trade cautious after slow Hong Kong show. Demand selective and inventory levels high, with buyers insisting on deep discounts for goods under 0.50 ct. Low manufacturing profits reducing Indian polished production as smaller goods not making money. 0.30ct. RAPI -0.6%, 1 ct. RAPI +0.1% in Feb. with better market for 0.70 to 1.99 ct. De Beers prices flat at $490 million sight. Far East consumer outlook improving as US and China approach trade deal. Chinese retailers restocking after Lunar New Year, with Hong Kong jewelry and luxury sales +5% to $1.1B in Jan. HRD adopts natural-diamond grading language for synthetics reports.