The RapNet Diamond Index (RAPI™) for 1-carat polished diamonds fell 2.4% in April, Rapaport Group said. The index declined to 7,159 on 1st May, versus 7,543 at the beginning of the year. Other sizes were also weak, while the RAPI for 0.30-carat diamonds saw some stability. Prices of smaller goods dropped, reversing their upward trend.
The decrease in diamond prices was due to sluggish demand in the two largest markets for diamond jewellery, the US and China.
Rapaport Senior Analyst Avi Krawitz said, “Polished trading was quieter than usual in April. Economic uncertainty stemming from the rise in consumer prices over the past year has impacted discretionary spending and discouraged retailers from buying inventory.”
| RapNet Diamond Index (RAPI™) | ||||
| Index | April | Year to Date 1 Jan, 2023, to 1 May, 2023 |
Year on Year 1 May, 2022, to 1 May, 2023 |
|
| RAPI 0.30 ct. | 1,610 | 0.4% | 8.6% | -0.4% |
| RAPI 0.50 ct. | 2,574 | -2.2% | -3.6% | -18.9% |
| RAPI 1 ct. | 7,159 | -2.4% | -5.0% | -22.8% |
| RAPI 3 ct. | 24,055 | -1.2% | -3.1% | -15.1% |
© Copyright 2023, Rapaport USA Inc.
US jewellers have decreased their bulk purchases and focused on memo to avoid owning excess goods in an uncertain environment. Chinese buyers are also cautious amid economic prudence on the Mainland.
Midstream polished inventory continues to rise even as manufacturing levels have dropped, it noted.
Polished production is well below capacity, with restrictions on Russian supply limiting the availability of rough. In India, the largest manufacturing centre, first-quarter rough imports were down 22% year on year to $4.26 billion.
Still, rough prices declined on the secondary market, reflecting weak interest ahead of the De Beers sight beginning 2nd May.
Rough and polished trading is expected to remain cautious in May, with dealers hoping the upcoming Las Vegas shows will lift sentiment and boost demand for the second half.
Krawitz added, “The diamond trade has endured a difficult start to 2023. The Las Vegas shows will be a test of conditions and provide a gauge for the state of the important US market. For now, inventory is meeting demand, and there is no urgency to buy before jewellers start preparing for the end-of-year holidays.”