Diamond Prices Slide in June

1 Ct. RAPI -0.7% in 2Q

Jul 5, 2016 3:58 AM By Rapaport News

Facebook

Twitter

RAPAPORT... PRESS RELEASE, July 5, 2016, New York … Polished diamond prices fell in June and sentiment softened after relatively weak Las Vegas and Hong Kong shows. Steady U.S. demand is supporting the market but overall demand is sluggish. Brexit, the U.S. election and continued weakness in China’s luxury sector are fueling uncertainty.

The RapNet Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds fell 0.5 percent in June. RAPI for 0.30-carat diamonds dropped 1.6 percent, while RAPI for 0.50-carat diamonds slid 0.4 percent. RAPI for 3-carat diamonds declined 2.4 percent.

RAPI for 1-carat diamonds fell 0.7 percent in the second quarter, reversing some of the gains made in the first three months of the year. The index rose 0.7 percent in the first half of 2016.

Copyright © 2016, Rapaport USA Inc.

Diamond markets slowed in the second quarter with selective buyers pushing for deeper discounts. Polished inventory continued to rise and prices came under pressure, while rough trading remained resilient. There is steady demand for commercial-quality SI-clarity goods, while demand is weak for better quality and large diamonds.

Rough trading was steady in June but slowed after the De Beers sight. De Beers sold $560 million worth of rough in June and its sales increased 12 percent to an estimated $3.02 billion in the first half of the year. De Beers and ALROSA kept prices steady on average but prices have started to soften on the secondary market and at auctions. Rough prices must come down in the third quarter for manufacturers to maintain profitability.

Liquidity is tightening as banks are withdrawing from the industry. Standard Chartered's decision to exit “high risk” diamond lending will result in the industry losing approximately $2 billion in credit, while Antwerp Diamond Bank continues to wind down its $1.5 billion book.

“The diamond industry is being challenged by low profitability, tight liquidity and sluggish demand. It is vital that rough diamond producers maintain price levels that ensure profitability and liquidity in the manufacturing sector during these uncertain times. Producers must increase their marketing spend to ensure generic diamond engagement ring demand from U.S. Millennial consumers,” said Martin Rapaport, Chairman of the Rapaport Group.

# # #

The Rapaport Monthly Report can be purchased at store.rapaport.com/monthly-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 the average asking price in hundred $/ct. of the 10 percent best priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network. www.RapNet.com has daily listings of over 1.2 million diamonds valued at approximately $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 121 countries and has 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 USA, Inc. Copyright © 2016 Rapaport USA inc. All rights reserved.”

Comment

Facebook

Twitter

Tags: Rapaport News