GJ Town India

The midstream, not profitable enough! Diamond markets are under pressure as profit margins have tightened and the trade war with China has fueled uncertainty. US jewelry sales are robust, but the midstream is not profitable enough to support a sustainable supply chain.                  The RapNet Diamond Index (RAPI) for 1-carat diamonds fell 0.7% in May and is down 1.7% since the beginning of the year. Diamond trading was weak at the JCK Las Vegas show. Demand is selective, with buyers avoiding inventory purchases. Jewelry retailers are taking more goods on memo. Polished suppliers are offering technology and source verification as a value-added service. There is good demand for 0.60- to 1.99-carat, F-J, VS2-I1 diamonds. Buyers are insisting on well-cut stones. Polished below 0.50 carats is slow due to excess supply, weak Chinese demand and tight Indian liquidity. Cutters are operating at lower capacity as they try to reduce inflated inventory. The number of dia

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