Oversupply polished softens price!
Diamond
Prices Soften
Despite
US Stability!
1
ct. RAPI -0.5% in April
Polished-diamond
prices declined in April due to continued oversupply and selective Far East
demand. US jewelry sales remain firm, helping to support the global trade. The
RapNet Diamond Index (RAPI) for 1-carat diamonds slid 0.5% in April. The index
has fallen 1% so far this year, and 3% since May 1, 2018.
Large
inventories of lower-quality old goods are available, and suppliers are willing
to discount them to raise cash. Liquidity is tight, as Indian credit lines
declined after the March 31 fiscal year-end. Manufacturers reduced rough
purchases in the first quarter, hoping to ease liquidity concerns by depleting
polished stock.
Combined
rough sales by De Beers and Alrosa dropped 19% by volume and an estimated 30%
by value in the first quarter. Mining companies are planning to reduce supply,
with global production down approximately 6% during the period.
Polished
supply continues to rise. The volume of diamonds listed on RapNet as of May 1
was up 7% since the beginning of the year, coming to 1.6 million stones valued
at $8.23 billion. RapNet listings have grown 22% over the past 12 months, with
a significant increase in 0.30- to 0.50-carat, G-J, VS-SI diamonds.
US
demand for 1.00 to 1.50-carat diamonds is steady ahead of the summer wedding
season. The country's polished imports fell slightly in the first two months of
the year, with more goods at lower prices. US jewelry sales are stable, even
with the number of specialty jewelers declining, as outlined in the April
edition of the Rapaport Research Report.
Companies
that embrace omni-channel and social-media platforms are driving growth. The US
market is led by top-tier independents that are adapting to rapid changes in
consumer habits, and catering to key segments among female self-purchasers and
millennials.
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