Diamond sales were sluggish in January amid limited restocking following the holiday season, according to a press release from Rapaport. Prices of rounds continued to increase as select categories were in short supply following India’s two-month freeze on rough imports, which ended 15th December. This trend will likely continue until inventories become too large, it noted.
However, buyers were reluctant to close deals at these prices. US dealers mostly bought for immediate demand and not for inventory. Sales in mainland China remained slow.
The RapNet Diamond Index (RAPI™) for 1-carat diamonds — reflecting D-to-H, IF-to-VS2 goods — rose 0.8% in January. RAPI for 0.50 carats climbed 2.4%. Most of the increases happened in the first half of the month; prices have been stable since then, Rapaport said.
| RapNet Diamond Index (RAPI™) | |||
| Index | January | Year on Year
Feb. 1, 2023, to Feb. 1, 2024 |
|
| RAPI 0.30 ct. | 1,419 | 0.0% | -7.1% |
| RAPI 0.50 ct. | 2,028 | 2.4% | -23.9% |
| RAPI 1 ct. | 6,027 | 0.8% | -19.3% |
| RAPI 3 ct. | 22,045 | 0.1% | -10.9% |
© Copyright 2024, Rapaport USA Inc.
Lower-quality goods saw a greater correction after last year’s price slump: The price of 1-carat, D-to-L, SI1-to-SI2 diamonds rose 2.1% in January. Prices for fancy shapes were steady or declined.
Rapaport informed that De Beers reduced rough prices by an average of 13% at its January sight. Sightholders welcomed the changes, but the goods remained expensive relative to polished and compared to rough prices at auctions and tenders.
The outlook for the US retail market in 2024 was mixed. Retailers expected steady Valentine’s Day sales. However, the Federal Reserve’s decision to keep interest rates at a 23-year high risks denting consumer confidence.