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Diamond Prices Decline in July

One Carat RAPI -1.7%

Aug 2, 2016 4:46 AM   By Rapaport
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RAPAPORT... PRESS RELEASE, August 2, 2016, New York… Polished diamond prices softened in July continuing the downtrend in the second quarter. Diamond markets were seasonally quiet with U.S. wholesalers taking their annual summer vacation. Overall polished demand remains weak.

The RapNet Diamond Index (RAPI™) for one carat diamonds fell 1.7 percent in July. RAPI for 0.30-carat diamonds dropped 1.8 percent and RAPI for 0.50-carat diamonds declined 0.5 percent. RAPI for 3-carat diamonds fell 1.5 percent.

In the first seven months of 2016, RAPI for one carat diamonds dropped 1.1 percent, down 4.7 percent from its level a year ago.



© Copyright 2016, Rapaport USA Inc.

Buyers are avoiding large volume purchases as prices continue to soften. Demand is selective as retailers take goods on memo rather than buy for inventory. Dealers are concerned about sluggish polished demand, rising inventory levels and narrowing profit margins in the seasonally weak second half of the year.

Throughout 2016, the diamond market has been characterized by cautious polished trading, increased rough sales, lower rough-mining production, and restrained consumer demand. De Beers and ALROSA cut their production in the first half and reduced the excess inventory that built up when demand slumped in the second half of 2015. In the first half of 2016, rough sales recovered as diamond manufacturers replenished stock that was depleted during the holiday season.

Polished inventory levels have increased as activity slowed in July. The number of diamonds listed on RapNet rose 20 percent since the beginning of the year.

The market is expected to remain quiet throughout the third quarter. Dealers are hoping the September Hong Kong show will signal a return to normalized activity. However, trading is subdued and expectations are low. Businesses across the distribution chain are focused on realigning their inventory to match lower levels of consumption. To ensure long term demand, the industry must significantly increase its marketing activity ahead of the fourth quarter holiday season.

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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 RapaportRapNet 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 $7.9 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.”
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Tags: Alrosa, De Beers, Diamond prices, Hong Kong, prices, Rapaport, Rapaport Monthly Report, RAPI, RapNet, RapNet Diamond Index, u.s.
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