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Certified Diamond Prices Decline 3.6% in 1H 2012
One Carat Diamond Prices Slump 13.7% Year on Year
Jul 3, 2012 8:30 AM
By Rapaport
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RAPAPORT... PRESS RELEASE, July 3, 2012, New York: Certified polished diamond prices fell in June as Far East and Indian demand stalled and industry liquidity dried up as the Indian Rupee collapsed. Year on year one carat prices declined 13.7%. Demand in the United States is steady but wholesale buying remains selective as consumer’s trend toward more affordable price points. Rough trading is at a standstill and DTC sightholders are rejecting overpriced De Beers boxes.
In June, the RapNet Diamond Index (RAPI) for 1 ct. certified diamonds fell 1.6 percent. The RAPI for 0.3 ct. stones declined by 1.2 percent and the RAPI for 0.5 ct. diamonds dropped 1.4 percent. RAPI for 3 ct. diamonds fell 1 percent during the month.
During the first half of 2012, RAPI for 1 ct. diamonds fell 3.6 percent with the steepest declines occurring during the latter part of May and through June. RAPI for 0.3 ct. stones dropped 3.7 percent and RAPI for 0.5 ct. diamonds declined by 3.6 percent during the period. RAPI for 3 ct. stones fell 5 percent during the half-year.
 Copyright © 2012 by Martin Rapaport
According to the just released Rapaport Research Report “Price Pressures,” polished trading has slowed with increasing concern about the global recession. Far East demand is sluggish as wholesale and retail buyers expect further price declines. Indian diamond manufacturers and dealers are under pressure due to high rough prices, the depreciating rupee, high inflation and a declining economy. Liquidity is tight and banks are viewing new proposals with greater caution than before.
Rapaport estimates suggest that DTC sales fell 19 percent year on year to about $2.83 billion in the first half of 2012 as prices rose about 5 percent and the volume of supply dropped. Sightholders are losing money on their De Beers and ALROSA purchases and are refusing boxes. They will continue to do so until rough prices decline, which they inevitably will in the second half of the year.
The second half of 2012 is expected to be challenging for the diamond industry as Far East demand is projected to remain conservative in the near-term while India’s industry crisis may be more prolonged. Polished prices are coming under increasing pressure as global diamond market sentiment is expected to remain weak.
Additional information about the state of the global diamond market is available in the just-released Rapaport Research Report, “Price Pressures”, which can be found at www.diamonds.net/reports or by emailing: specialreports@diamonds.net.
Rapaport Media Contacts: media@diamonds.net
International: Alissa Goren +1-718-473-0882<> U.S.: Sherri Hendricks +1-702-893-9400 <> Mumbai: Mittal Kalsy, +1-91-97699-30069
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 850,000 diamonds valued over US$5 billion and 7100 members in over 78 countries.
About the Rapaport Group: The Rapaport Group is an international network of companies providing added value services that support the development of free, fair and competitive global diamond markets. Established in 1978, the Rapaport Diamond Report is the primary source of diamond prices and market information. Group activities include publishing, research and marketing services, internet information and diamond trading networks, global rough and polished diamond tenders, diamond certification, quality- control, compliance, shipping, and financial services. Major activities of the group include the development of markets for Fair Trade Diamonds and Jewelry as well as the creation of diamond futures markets. 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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Tags:
, Alrosa, De Beers, diamonds, polished prices, Rapaport, RAPI, RapNet Diamond Index, Sightholders
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Jul 9, 2012 6:49AM
By Rapaport News
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Dear Vikram
Your comment has been noted. Thank you for your feedback.
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UN SENSIBLE PRICE ADJUSTMENT.
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Jul 6, 2012 4:23AM
By VIKRAM TANWANI
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IF THIS IS YOUR OWN COMMENT THEN WHY THE HELL HAS THERE BEEN A PRICE ADJUSTMENT IN THE FANCY SHAPE PRICES.NOTHING MAKES SENSE ANY MORE.
Fancies: Demand for fancy shape diamonds improving with reductions in discounts. Price conscious consumers buying more fancy shapes as their prices appear more attractive than rounds. Manufacturers are shifting production back to fancies in light of shortages. Square cuts doing better than curves (Pear Shapes, Ovals, Marquise etc.). Fancy shapes remain less liquid than rounds and may trade at significantly higher discounts for medium to less-well-shaped diamonds. Very large (5 ct.+) top-quality well cut fancies attracting some investment demand.
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