Rapaport Press Release
RAPAPORT... PRESS RELEASE, February 4, 2014, New York: Diamond markets improved in January but manufacturers are concerned that higher rough prices are cutting their profit margins. Polished demand improved due to the solid U.S. market, while Far East demand was cautious and slowed down as jewelers completed their Chinese New Year purchases.

In January, the RapNet Diamond Index (RAPI™) for certified 1-carat polished diamonds rose 1.2 percent, while RAPI for smaller certified goods posted stronger gains with rising demand for 0.30-carat to 0.59-carat diamonds. Overall, there was good demand for GIA-certified dossiers.


Copyright © by Martin Rapaport

The Rapaport Monthly Report – February 2014, ''Optimistic Markets,'' noted that polished diamond dealers gained confidence after the U.S. holiday period proved to be better than expected for the trade. Polished inventories were low throughout the pipeline, which influenced demand to rise during the month. Cutters’ profit margins also improved as prices rose on polished diamonds that were manufactured from rough bought at reduced prices a few months ago. Simultaneously, polished suppliers were cautious not to raise prices too much as their program buyers demanded stability.

Cutters are raising production levels after reducing rough buying in the second half of 2013. Rough markets were buoyant in January with De Beers boxes gaining stronger premiums in the secondary market. Rough prices rose an estimated 5 percent during the month. De Beers sightholders are concerned about possible additional price hikes in February that will not be supported by polished trends in the coming months.

Diamond mining companies are also expecting to increase their rough supply as global production rose by more than 10 percent in 2013, according to Rapaport estimates.

Increased rough production and higher rough prices are unsustainable in current market conditions. Diamond markets are more optimistic but wholesalers and retail jewelers continue to manage with leaner inventories. The outlook for 2014 is for healthy, yet unspectacular growth.

Polished buyers continue to resist higher prices based on rough price hikes, and while rough demand is strong in the first quarter, cutters are determined to maintain respectable margins throughout 2014.

Read the attached Rapaport Monthly Report, ‘Optimistic Markets,’ at www.diamonds.net/report or email: specialreports@diamonds.net.

Rapaport Media Contacts: media@diamonds.net
U.S.: Sherri Hendricks +1-702-893-9400;
International: Lisa Miller +1-702-425-9088;
Mumbai: Manisha Mehta +91-97699-30065

About the Rapaport RapNet Diamond Index (RAPI™): The RAPI is based on the average asking price in hundred $/ct. for the top 25 quality 1 ct. round diamonds (D-H, IF-VS2, RapSpec-2 and better) with GIA grading reports offered for sale on RapNet – Rapaport Diamond Trading Network. The RAPI is provided for various sizes www.RAPNET.com has daily listings of over 1 million diamonds valued over US$6.6 billion and 12,700 members in over 84 countries.

About the Rapaport Group:
The Rapaport Group is an international network of companies providing added value services that support the development of fair, transparent, efficient, and competitive diamond and jewelry markets. Established in 1978, the Rapaport Diamond Report is the primary source of diamond price and market information. Group activities include Rapaport Information Services providing research, analysis and news; RapNet – the world's largest diamond trading network; Rapaport Laboratory Services provides GIA and gemological services in India, Belgium and Israel; and Rapaport Trading and Auction Services with monthly sales of over 50,000 carats. The Group employs 180 people with offices in New York, Las Vegas, Antwerp, Ramat Gan, Mumbai, Surat, Dubai, Hong Kong and Shanghai. Additional information is available at www.Rapaport.com.

Martin Rapaport (Publisher) grants limited permission to use copyrighted data appearing in this press release in and in conjunction with journalistic copy, reporting or articles concerning diamond pricing and information in graph or data presentation format only. The following credit notice must appear alongside, underneath, or in close proximity to any use of the copyrighted data: “Used with permission of Rapaport USA, Inc. Copyright © Martin Rapaport. All rights reserved.”


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