August Sees a Slowdown in the international Diamond MarketRAPAPORT PRESS RELEASE, Las Vegas, September 3, 2024 August witnessed a slowdown in diamond trading as a consequence of seasonal variations and overall consumer demand concerns. The downward trend in polished prices continued.
Retail sales in the United States were uneven, with significant synthetic materials competitiveness and economic challenges. Retailers and dealers conducted selective selections. China remained weak.
The RapNet Diamond Index (RAPI™) for 1-carat items, encompassing round, D to H, IF to VS2 diamonds, decreased by 1.1% in August. The index also fell 2.7% for 0.30-carat stones, 0.7% for 0.50 carats, and 0.9% for 3 carats.
The losses were softer than in July, due to a change to the way the RapNet Index (RAPI) is calculated. Diamond ads from China were removed on August 21, following Chinese retailers published diamonds at low prices and looked for supplementary currency conversion fees. Their removal brought about a technical increase of 1.3 percentage points on average throughout the four sizes in the RAPI table. On August 30, Rapaport reduced cost on the Rapaport Price List to reflect a decrease in market asking prices.
The decision by Indian factories to extend their vacation time throughout the public holidays in August would require time to impact inventories. Between July 1 and September 1, the total number of diamonds on RapNet jumped by 4%, surpassing 1.74 million. In accordance with the sector’s attempts to reduce supply and demand, De Beers and Petra Diamonds postponed rough sales.
India’s IIJS exhibition indicated a strong domestic demand for gold and jewelry. In light of decreased demand and orders for natural diamonds in China, consumers have modest projections for the September Jewellery & Gem World event in Hong Kong.
As of September 1, items weighing less than half a carat were subject to limitations on diamond imports by the Organization of Seven (G7). Exempting “grandfathered” products that were outside of Russia previous to the implementation of sanctions on March 1st and September 1st for diamonds weighing between 0.50 and 1 carat, the US followed the lead established by the European Union.
Concerning the RapNet Diamond Index, or RAPITM,
The average asking price (RAPI) of the 10% lowest-priced round diamonds in each of the top 25 quality categories (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) available for purchase on RapNet® (www.rapnet.com) is expressed in USD per carat.
What is the Rapaport Group:
The Rapaport Group is an international consortium of businesses that offers value-added services that encourage the development of markets for diamonds and jewelry that are ethical, open and competitive, and efficient. The group began operations in 1976 and now serves over 20,000 clients in more than 120 countries. The group’s operations include Rapaport Information Services, offering research, analysis, and news along with the benchmark Rapaport Price List for diamonds; RapNet, the largest diamond trading network in the world with daily listings surpassing $8 billion; and Rapaport Trading and Auction Services, the largest diamond recycler worldwide. You may obtain additional information at www.rapaport.com.
