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Certified Diamond Prices Soften in September
RAPI for 1 Ct. Diamonds -6.9% in 3Q 2012
Oct 3, 2012 6:30 AM
By Rapaport
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RAPAPORT... PRESS RELEASE, October 3, 2012, New York: Certified polished diamond prices continued to soften in September as buyers remain cautious ahead of the fourth-quarter holiday season. The Hong Kong Jewellery & Gem Fair reflected mediocre Far East demand as buyers concentrated on inexpensive lower-quality diamonds.
Jewelry retailers are buying diamonds to meet their short-term needs but are maintaining low inventories. The prevailing diminished demand has influenced diamond manufacturers to reduce their output, and mining companies to lower their production levels. Both sectors have adjusted their forecasts for the rest of 2012 accordingly.
In September, the RapNet Diamond Index (RAPI™) for 1 ct. certified diamonds fell 0.7 percent. RAPI for 0.3 ct. stones decreased 0.6 percent and RAPI for 0.5 ct. diamonds declined 0.6 percent. RAPI for 3 ct. diamonds fell 0.3 percent during the month.
During the third quarter of 2012, RAPI for 1 ct. diamonds fell 6.9 percent. RAPI for 1 ct. diamonds dropped 10.2 percent during the first nine months of the year and is down 14.6 percent from one year ago.
Copyright © 2012 by Martin Rapaport.
According to the just released Rapaport Research Report, “Price Sensitive Demand,” diamond markets improved after the quiet June-August period as dealers started to prepare for the holiday season. However, trading remains uncertain as buyers are testing price levels and suppliers are competing to lure serious customers.
Rough trading improved slightly as prices fell in August but diamond manufacturers remain under pressure. They have lowered factory outputs and are struggling to retain their skilled labor. Mining companies intent on maintaining their rough price levels are keeping diamonds in the ground, or in inventory, until demand improves and they are able to fetch better prices.
The diamond market is expected to remain under pressure in the short term due to prevailing economic uncertainty. While traders left the Hong Kong show in a fairly positive mood, they have grown accustomed to the lower level of demand that has been apparent throughout 2012. Buyers are selective and price sensitive, seeking mainly lower price point VS2-SI diamonds, and doing a lot of price comparison before making their purchases.
Forecasts for the fourth quarter are therefore restrained. Dealers foresee relatively stable demand in the U.S. and significantly slower growth in China and India this coming holiday season, but they still lack the confidence to signal that the market has indeed bottomed out.
Read the Rapaport Research Report, “Price Sensitive Demand”, at www.diamonds.net/reports or email: specialreports@diamonds.net.
Rapaport Media Contacts: media@diamonds.net
International: Shira Topiol +1-702-425-9088 <> U.S.: Sherri Hendricks +1-702-893-9400 <> 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 970,000 diamonds valued over US$6.1 billion and 7400 members in over 80 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:
Rapaport, RapNet Diamond Index
RAPI
Rapaport
Diamonds
De Beers
DTC
Diamond prices
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