Diamond prices experienced a decline in September as Indian manufacturers curtailed their rough-buying and polished production efforts to address a supply-demand imbalance, according to Rapaport. This adjustment led to a decrease in polished inventories, although it may take several weeks for them to reach healthier levels. Consequently, shortages of in-demand diamond items are anticipated.
The RapNet Diamond Index (RAPI™) for 1-carat goods, representing round, D to H, IF to VS2 diamonds, fell by 4.1% in September. Similar declines were observed for smaller sizes, with the index dropping 4% for 0.30-carat stones, 4.2% for 0.50 carats, and 2.5% for 3 carats.
Lower-quality diamonds witnessed a more moderate price reduction, with round, 1-carat, D to H, SI diamonds experiencing a 3.5% decrease. Fancy shapes, however, saw a less significant price drop compared to round-cut stones.
In the US, retail diamond sales remained stable ahead of the holiday season. However, both store owners and their supplying wholesalers exercised caution in restocking diamonds. Retailers continued to prioritise memo sales.
Rapaport noted that India’s domestic jewellery market provided support to the trade in diamonds under 1 carat. Meanwhile, Chinese retail orders remained weak. The Jewellery & Gem World show in Hong Kong witnessed slow diamond trading due to the absence of many Chinese buyers. Sentiment among diamond dealers at the Vicenzaoro fair in Italy was subdued, although exhibitors of finished jewellery expressed more optimism.
The rough diamond market remained quiet as manufacturers reduced their inventories. India’s net rough imports plummeted by 47% year-on-year to $642.3 million in August, marking the lowest level since November 2023. Belgium’s diamond activity, encompassing both rough imports and exports, also declined by 33% year-on-year to $671 million in September, Rapaport said.
De Beers continued to allow deferrals and maintain firm rough prices at its September sight. Alrosa, another major diamond producer, indicated its intention to uphold prices for the time being. These actions suggest that both miners are not inclined to flood the market with rough diamonds.