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Certified Polished Diamond Prices -2% in July
Aug 6, 2013 5:00 AM
By Rapaport
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RAPAPORT... PRESS RELEASE, August 6, 2013, New York: Certified polished diamond prices fell in July. China’s economic slowdown significantly reduced diamond demand resulting in overstocked retail inventories. India’s jewelry market plummeted due to the weak rupee and government programs intended to curb gold consumption and jewelry demand. Furthermore, diamond manufacturers are facing tight liquidity as banks become increasingly concerned about the high levels of industry debt and high rough diamond prices, which result in negative cash flow. The only bright spot has been the U.S., where demand has been steady but selective.
The RapNet Diamond Index (RAPI) for 1-carat certified polished diamonds fell 2.1 percent in July. RAPI for 0.30-carat diamonds declined 3.7 percent during the month, while RAPI for 0.50-carat diamonds dropped 3 percent and RAPI for 3-carat fell 1.3 percent.
Diamond prices in most sizes were relatively steady in the first half of 2013 but are now showing losses for the year. RAPI for 0.30-carat diamonds increased 3.5 percent in the first seven months of the year following strong gains in the first quarter.
Copyright © by Martin Rapaport
According to the Rapaport Monthly Report – August 2013, “Price Pressures,” diamond trading was quiet in July due to a slowdown in China and India. There is very little inventory demand from China and increasing memo availability to the Far East market from India. Wholesale markets in the U.S., Belgium and Israel were closed during the month for the annual summer vacations, resulting in low diamond trading activity.
Rough diamond trading on the secondary market was quiet with dealers increasingly giving long-term credit to procure better prices and improve their margins. Rough prices are high after strong tender results achieved in July and as De Beers increased its prices slightly.
Polished diamond prices are expected to remain under pressure for the rest of the third quarter. Demand is being driven by steady orders from the major U.S. jewelry retailers, and supported by the smaller independents, but very few are building up inventory. Expectations for next week’s Mumbai show are low as sentiment in India’s diamond and jewelry sectors remains weak. Far East markets are expected to remain quiet through the summer months before stability settles in during the fourth quarter holiday season.
Read the attached Rapaport Research Report, “Price Pressures,” 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$6.7 billion and 12,000 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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Tags:
diamonds, Rapaport, RAPI, RapNet
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