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Diamond Prices Decline in October
Nov 1, 2016 10:59 AM
By Rapaport
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PRESS RELEASE, November 1, 2016, New York… Diamond markets were quiet in October with wholesale businesses closing for the respective Chinese, Jewish and Indian holidays. Trading slowed as larger U.S. holiday orders were already filled and dealers shifted to accommodate specific requirements from their retail customers.
The RapNet Diamond Index (RAPI™) for one-carat, RapSpec-A3+ polished diamonds fell 2.3% in October. The index dropped 4.3% in the first ten months of the year.
©
Copyright 2016, Rapaport USA Inc.
Market
sentiment improved after the September Hong Kong show but polished trading remained
sluggish and inventory levels relatively high. Rough demand softened as rough
prices firmed in October and Indian diamond manufacturers scaled down
operations before closing for Diwali.
While
rough demand slowed in October, mining companies continue to register strong
growth compared with 2015 when demand slumped due to low manufacturing
profitability and high polished inventory. De Beers sales volume rose 90% in
the third quarter, while ALROSA’s increased 69%.
Manufacturing
profits remain tight due to sluggish polished demand, while rough trading was
relatively strong in the third quarter. India’s rough imports soared 54% to $4.2B
in the third quarter, a record for the period, while its polished exports grew
15% to $6.1B.
The
industry’s focus shifted to retail as Diwali, Christmas and the Chinese New
Year provide important jewelry selling opportunities in the major consumer
markets. We expect moderate U.S. jewelry sales growth this Christmas, relative
stability in China but weakness in Hong Kong, while reports signal steady gold
sales in India during Diwali.
However,
holiday jewelry sales are unlikely to stimulate a sustainable rise in diamond trading
and polished prices are expected to remain under pressure for the rest of 2016
and into 2017. That should cause rough prices to soften in the long term. With
sufficient stock in the midstream, the diamond trade continues to re-align its
inventory with lower levels of demand while there is still an overhang of
supply from previous years.
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
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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 $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 120 countries. Group activities include Rapaport
Information Services, providing the Rapaport Price List, research, analysis and
news; RapNet – the world's largest diamond trading network; Rapaport Laboratory
Services provides GIA and Rapaport gemological services in India, Belgium and
Israel; and Rapaport Trading and Auction Services specializing in recycled
diamonds and jewelry. 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 © 2016 Rapaport USA Inc. All
rights reserved.”
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Tags:
Diwali, Hong Kong, polished demand, polished prices, Rapaport, rough prices
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