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Diamond Prices Slide in August
Hopes Rise for Stronger Holiday Buying
Sep 5, 2017 4:30 AM
By Rapaport
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RAPAPORT PRESS RELEASE, September 5, 2017, New York… Diamond
prices remained under pressure with slow trading during the August vacation
period. Liquidity and profitability tightened during
the summer, but suppliers are optimistic that trading will improve ahead of the
fourth-quarter holiday season.
The RapNet Diamond Index (RAPI™) for
1-carat diamonds fell 0.6% in August and declined 3.8% since January 1.
© Copyright 2017, Rapaport USA Inc.
As the Rapaport Monthly Report – September 2017 notes, polished
inventory is rising, with steady manufacturing and sluggish demand as dealers
prepare for the holiday season. Liquidity concerns deepened following reported defaults
by manufacturer InterJewel Pvt. Ltd. and wholesaler Ankur Diamonds.
Manufacturers are under pressure, as rough prices rose an
estimated 3% in the first half of 2017 and polished inventory levels continue
to rise. The number of diamonds listed on RapNet has risen 22% since January to
1.44 million on September 1.
Rough trading slowed in August after a robust first half,
with De Beers boxes selling at low average premiums on the secondary market. Rough
demand is expected to slow in the coming month due to the tight manufacturing profit
margins and possible oversupply of polished. Indian cutters brought forward their
pre-Diwali purchases, since the festival is earlier than usual this year, on
October 19.
Suppliers are hoping the September Hong Kong Jewellery &
Gem Fair will spur stronger polished trading. Chinese buyers are pushing for
higher discounts as they prepare for the October 1 National Day. Dealers are trying
to hold prices firm in anticipation of stronger demand as retailers purchase
their holiday inventory.
Improved earnings at Signet Jewelers and Tiffany & Co.,
along with increased industry marketing budgets, have raised expectations for
the holiday season. Attention is focused on De Beers’ branding and the Diamond
Producers Association’s generic campaigns to stimulate demand and higher
polished prices.
The Rapaport Monthly Report is available at
store.rapaport.com/monthly-report.
Rapaport Media Contacts: media@diamonds.net
US: Sherri Hendricks +1-702-893-9400
International: Gabriella Laster +1-718-521-4976
Mumbai: Priyanka Vaidya +91-97699-38102
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 – Rapaport Diamond Trading Network. www.RapNet.com has daily
listings of over 1.4 million diamonds valued at approximately $7.8 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
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, with over
15,000 members in 95 countries and daily listings of over 1.4 million carats
valued at over $8 billion; 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.
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Tags:
prices, Rapaport, RAPI
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