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RAPAPORT PRESS RELEASE, June 5, 2019, Las
Vegas … Diamond markets are under pressure as profit margins have tightened
and the trade war with China has fueled
uncertainty. US jewelry sales are
robust, but the midstream is not profitable
enough to support a sustainable
supply chain.
The RapNet Diamond Index (RAPI™) for 1-carat
diamonds fell
0.7% in May and is down 1.7% since the beginning
of the year.
|
RapNet Diamond Index
(RAPI™)
|
|
May |
Year to
date
Jan. 1 to Jun. 1 |
Year on year
Jun. 1, 2018, to Jun. 1,
2019 |
| RAPI 0.30 ct. |
-3.7% |
-9.4% |
-15.8% |
| RAPI 0.50 ct. |
-1.7% |
-2.9% |
-5.9% |
| RAPI 1 ct. |
-0.7% |
-1.7% |
-3.4% |
| RAPI 3 ct. |
-4.0% |
-9.8% |
-13.6% |
©
Copyright 2019, Rapaport USA Inc. Note: The price decreases
reflected
in this report are influenced by the inclusion of diamonds that were
previously
categorized below the RapSpec A3+ standard.
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Diamond trading was weak at the JCK Las Vegas
show. Demand is
selective, with buyers avoiding inventory
purchases. Jewelry retailers are
taking more goods on memo. Polished suppliers
are offering technology and
source verification as a value-added service.
There is good demand for 0.60- to 1.99-carat,
F-J, VS2-I1 diamonds. Buyers are insisting on
well-cut stones. Polished below 0.50
carats is slow due to excess supply, weak
Chinese demand and tight Indian
liquidity.
Cutters are operating at lower capacity as
they try to reduce inflated
inventory. The number of diamonds on RapNet
declined 2.6% to 1.5 million stones
in May, but was up 16% from a year earlier on
June 1.
Manufacturers are rejecting
high-priced rough that has made polished
production unprofitable. De Beers and
Alrosa are carefully managing production and
price levels amid this year’s slow
rough demand, as outlined in the May edition of
the Rapaport Research Report.
“Diamond demand is relatively good, but the
middle markets are in
danger of collapse,” said Martin Rapaport,
Chairman of the Rapaport Group. “We
are reaching the point where there is
insufficient liquidity to support the
flow of diamonds through the supply chain. If
the trade does not change its
business practices and adapt to new realities,
the diamond industry will suffer
extreme financial and regulatory disruption.
Manufacturers will stop cutting.”
To learn about the Rapaport Research
Report and to subscribe, click 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 issues affecting the diamond market.
It presents exclusive analytics of diamond prices for a variety of categories,
based on sales and inventory data from RapNet – The Diamond
Market.
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® –
The Diamond Market. www.RapNet.com has daily listings of
more than 1.5 million diamonds valued at over $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 97 countries and daily listings of more than 1.5 million diamonds 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.
Martin Rapaport 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 2019 Rapaport USA Inc. All rights reserved.”
Image: Polished diamonds. (Shutterstock). |