Diamond Market Improves as Holidays Approach
November 05, 2019
RAPAPORT PRESS RELEASE, November 5, 2019, Las Vegas … Diamond trading improved in late October after various Jewish, Indian and Chinese holidays. Dealers are focused on filling holiday orders as US jewelers prepare inventory for the season. Shortages are supporting prices of nonfluorescent RapSpec A3+ goods.
Polished prices stabilized in October. The RapNet Diamond Index (RAPI™) for 1-carat diamonds was down 0.1%, having dropped 4.7% since the beginning of the year.
|RapNet Diamond Index (RAPI™)|
|October||Year to date|
Jan. 1 to Nov. 1
|Year on year|
Nov. 1, 2018, to Nov. 1, 2019
|RAPI 0.30 ct.||1.5%||-13.6%||-17.3%|
|RAPI 0.50 ct.||0.5%||-7.6%||-9.0%|
|RAPI 1 ct.||-0.1%||-4.7%||-5.3%|
|RAPI 3 ct.||-0.3%||-16.2%||-18.5%|
Supply of better-quality diamonds has diminished since July as manufacturers reduced their polished production and rough purchases.
India, which accounts for an estimated 90% of production, saw its rough imports fall 19% year on year to $3.11 billion in the third quarter and its polished exports drop 20% to $5.09 billion. However, the number of diamonds listed on RapNet has declined only 3% since July 1 to 1.45 million.
De Beers has kept production in line with sales volume this year and restricted supply through its flexible buyback policy in September. Alrosa’s production exceeded sales, resulting in its inventory rising 40% year on year to 21.7 million carats at the end of third quarter.
Excess inventory continues to burden the diamond industry at the mining and manufacturing levels as retailers remain conservative with their purchases. Mining companies will need to reduce production in 2020 to help restore the balance. Rapaport calls on the industry to invest in aggressive marketing to stimulate consumer desire for diamond jewelry during the holiday season.
Rapaport will make a deeper assessment of market conditions in its Diamond Trends Webinar on November 6. To register, click here.
These trends are also evident in RapNet data published in the October Rapaport Research Report. The report includes an analysis of the potential impact automation will have on the diamond manufacturing sector. To learn more about the market, subscribe to the Rapaport Research Report here.
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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 approximately 1.45 million diamonds valued at about $7.6 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 18,000 members in 97 countries and daily listings of approximately 1.45 million diamonds valued at about $7.6 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.
Image: Rough diamonds from Alrosa production. (Alrosa)
Article originally published on Diamonds.net here