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Diamond Prices Stable as Market Finds Balance

1 ct. RAPI +0.8% in February

Mar 2, 2021 5:06 AM   By Rapaport
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RAPAPORT PRESS RELEASE, March 2, 2021, Las Vegas… The diamond industry was optimistic in February as the US and China saw solid jewelry sales. Polished trading was steady during the month, though seasonally slower than in January.

Polished prices were stable despite a gradual increase in inventory levels. The RapNet Diamond Index (RAPI™) for 1-carat diamonds rose 0.8%.

RapNet Diamond Index (RAPI™)
February Year to date
Jan. 1 to Mar. 1
Year on year
Mar. 1, 2020, to Mar. 1 2021
RAPI 0.30 ct. 0.0% 0.5% -0.4%
RAPI 0.50 ct. -0.1% -1.2% 11.0%
RAPI 1 ct. 0.8% 0.2% 7.6%
RAPI 3 ct. -1.9% -0.2% 7.1%
© Copyright 2021, Rapaport USA Inc.

Strong e-commerce growth drove positive sales during the Chinese New Year. Online retail revenues rose 15% in mainland China in 2020, according to government data. Digital platforms are also leading the recovery in the US, where jewelers reported good Valentine’s Day activity.

Retailers have been steadily restocking since the holiday season but are keeping fewer goods in-store than before. Dealers and manufacturers are carefully considering their requirements for the year ahead.

Midstream inventory levels have increased following a spike in rough buying. Polished suppliers depleted inventory last year when the Covid-19 lockdowns limited manufacturing. Cutters have since raised polished production to fill shortages in the market. The quantity of diamonds listed on RapNet as of March 1 was 1.25 million — 11.1% more than at the beginning of the year.

The market continues to enjoy a healthy balance between supply and demand. Manufacturers are trying to protect their profit margins with firm polished prices after the recent hike in the cost of rough. De Beers and Alrosa raised prices an average 3% to 5% in February, the third increase in as many months. Rough valuations are approaching pre-pandemic levels.

Rough buying is expected to cool in the coming months. Although manufacturers need inventory to meet jewelers’ growing memo demands and the faster pace of e-commerce orders, they also want to avoid upsetting the current equilibrium once polished trading seasonally slows in the second quarter.

For in-depth diamond price, supply and demand data and analysis, subscribe to the Rapaport Research Report here.

Rapaport Media Contacts: media@diamonds.net
US: Sherri Hendricks +1-702-893-9400
International: Alex Shine +1-718-878-5138
Mumbai: Prashant Bhojani +91-97694-66855

About the Rapaport Research Report: The Rapaport Research Report provides subscribers with in-depth analysis of key themes affecting the diamond market. It also presents exclusive analytics for diamond prices in a variety of categories, based on sales and inventory data from RapNet®.

About the Rapaport RapNet Diamond Index (RAPI™): The RAPI is the average asking price in hundred $/ct. of the 10% 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® (www.rapnet.com). 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 ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1976, the group has more than 20,000 clients in over 121 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Price List for diamonds, as well as research, analysis and news; RapNet, the world’s largest diamond trading network; Rapaport Laboratory Services, providing Rapaport gemological services in India, Israel and New York; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds, selling over 400,000 carats of diamonds a year. Additional information is available at www.diamonds.net.
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Tags: Alrosa, De Beers, diamonds, Jewelry, Rapaport, RAPI, RapNet
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