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Diamond Markets Return Cautiously
RAPI for 1ct. up 0.2% in May
Jun 2, 2020 5:22 AM
By Rapaport
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RAPAPORT PRESS RELEASE, June 2, 2020, Las Vegas… Diamond trading is starting to regain traction in Hong Kong with some demand from China. Hong Kong is mostly open for business, but concerns are mounting about renewed protests following new Chinese security laws. New York’s 47th Street remains closed as other parts of the US slowly begin to open. US riots over police brutality are also creating concern. India is partially active again, while bourses in Belgium and Israel are operating under health and safety guidelines.
Polished prices were stable in May amid minimal trading; business was limited to online platforms. The RapNet Diamond Index (RAPI™) for 1-carat diamonds rose 0.2% during the month, but has dropped 8.3% since the beginning of the year.
| RapNet Diamond Index (RAPI™) |
|
May |
Year to date
Jan. 1 to Jun. 1 |
Year on year
Jun. 1, 2019, to Jun. 1 2020 |
| RAPI 0.30 ct. |
-2.1% |
-6.2% |
-4.2% |
| RAPI 0.50 ct. |
-0.9% |
-6.4% |
-8.4% |
| RAPI 1 ct. |
0.2% |
-8.3% |
-11.7% |
| RAPI 3 ct. |
-2.2% |
-2.9% |
-10.1% |
© Copyright 2020, Rapaport USA Inc.
The slowdown in jewelry retail is affecting the rest of the market. Stores have reopened in many US states, offering virtual consultations and curbside pickup. Foot traffic remains down as shoppers favor online channels.
Jewelers have enough inventory to satisfy short-term demand, at least until the holiday season. They are expected to focus their promotions on bridal, as well as classic diamond jewelry like solitaire necklaces and tennis bracelets.
Manufacturers are trying to reduce supply. Miners’ inventories have grown during the shutdown as rough sales have slumped. Mining companies are offering more goods on their digital platforms as travel restrictions remain in place. Some are relocating their sales to Antwerp while southern Africa and India remain on lockdown.
The industry is starting to rethink its marketing message, moving to highlight diamonds as a symbol of values and emotional connections as people emerge from isolation. The new Natural Diamond Council (NDC), formerly the Diamond Producers Association (DPA), has an opportunity to reengage with younger consumers in an authentic and dynamic manner that is appropriate for today’s tough market conditions.
For in-depth data on diamond pricing, supply and demand, 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 on diamond prices for 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 GIA and Rapaport gemological services in India, Israel and Belgium; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds, selling over 500,000 carats of diamonds a year. Additional information is available at www.diamonds.net.
Image: Polished diamonds. (Shutterstock)
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Tags:
Alrosa, Antwerp, De Beers, diamonds, Natural Diamond Council, protests, Rapaport, Rapaport News, RAPI, RapNet
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