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Polished Diamond Prices Rise in November
Scarcities, Holidays and Chinese Demand Supporting Prices with 0.30ct. RAPI +3%
Dec 8, 2015 3:33 AM
By Rapaport
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RAPAPORT... PRESS
RELEASE, December 8, 2015, New York … Polished diamond prices firmed in
November supported by shortages of select categories and seasonal holiday
demand. Trading improved with dealers focused on filling U.S. holiday orders
but old challenges remain: Manufacturing is unprofitable at current rough price
levels and the diamond distribution chain is overstocked, despite some scarcities.
The RapNet
Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds rose 0.7
percent in November, its first increase in six months. RAPI for 0.30-carat
diamonds advanced 3.3 percent and RAPI for 0.50-carat diamonds grew 1.1
percent. RAPI for 3-carat diamonds fell 0.6 percent. RAPI for 1-carat diamonds remains down 7.1
percent since the beginning of the year.
©
Copyright 2015, Martin Rapaport
“This is the
first time in six months that there has been an increase in the benchmark 1-carat
RAPI index and 17 months since the last increase in 30 pointers. The worst may
be over for declining polished prices, however, polished shortages are reducing
sales volume and trade profitability,” said Martin Rapaport, Chairman of the
Rapaport Group.
The Rapaport
Monthly Report notes that U.S. buyers became more aggressive during November as
there were fewer goods available to fill orders for the holiday season.
Retailers offered heavy discounts for the Thanksgiving weekend, particularly
online as consumers change their buying habits. However, the diamond market has
realistic expectations about the challenging supply side situation and the
limited impact that holiday sales will have on the market.
Market
sentiment is weak despite the November uptrend. Inventory levels have come down
but remain higher than usual for this time of the year. There are very few
fresh goods coming into the market as manufacturers maintained reduced polished
production with factories in India closed for three-to-four weeks during Diwali.
Rough demand
slumped to record lows with the De Beers November sight valued at an estimated
$70 million and projections for another very small December sight due to De
Beers high rough price policy. Rough auction sales and prices have firmed as
manufacturers are looking for supply outside the De Beers and Russian sight
contract system. However, secondary market trading is quiet as cutting center
profitability is tight at current rough price levels.
Rapaport
called on De Beers to lower rough prices by 30-50 percent in order to inject liquidity
and restore profitability to the diamond trade (see article: ‘Rough
Bubble Bust’).
“The rough
diamond distribution system is collapsing as De Beers and other mining
companies attempt to force unsustainable artificially high rough diamond prices
on the diamond trade. Rough prices are higher than polished prices, which have
come down to realistic levels due to the downturn in the global economy. The
mining company’s refusal to lower rough prices is destroying the diamond trade,
creating severe financial losses, illiquidity, supply shortages, and the loss
of tens of thousands of jobs. DeBeers must immediately inject liquidity into
the diamond trade by reducing rough diamond prices 30-50 percent. There is no
justification for rough prices higher than polished diamond prices. Without a
viable, profitable and sustainable diamond trade distributing their diamonds,
De Beers diamond mines are worthless,” Martin Rapaport said.
The Rapaport
Monthly Report can be purchased at www.diamonds.net/report
Rapaport
Media Contacts: media@diamonds.net
U.S.: Sherri
Hendricks +1-702-893-9400
International:
Gabriella Laster +1-718-521-4976
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. of the 10 best priced diamonds, for the top 25 quality
round diamonds (D-H, IF-VS2, RapSpec-A3 and better) offered for sale on RapNet
– Rapaport Diamond Trading Network. The RAPI is provided for various sizes. www.RapNet.com has daily listings of over 1.1 million
diamonds valued at about $8 billion. Additional information is available at www.Diamonds.net.
About
the Rapaport Group:
The Rapaport Group is an international network of companies providing added
value services that support the development of fair, transparent, competitive
and efficient diamond and jewelry markets. Established in 1978, the Rapaport
Price List is the primary source of diamond price and market information. Group
activities include Rapaport Information Services, Rapaport Magazine, and
Diamonds.net, providing research, analysis and news; RapNet – the world’s
largest diamond trading network; Rapaport Laboratory Services provides GIA
gemological services in India, Belgium and Israel; and Rapaport Trading and
Auction Services specializing in recycled diamonds and jewelry. The Group
supports over 20,000 clients in 118 countries and employs 220 people with
offices in New York, Las Vegas, Antwerp, Ramat Gan, Mumbai, Surat, Dubai and
Hong Kong. Additional information is available at www.Diamonds.net.
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 US, Inc. Copyright ©
Martin Rapaport. All rights reserved.”
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Tags:
diamonds, Martin Rapaport, Rapaport, RAPI, RapNet
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