Polished diamond suppliers reduce prices in November


RapNet diamond index (RAPI™) for 1 ct. -1.7%

Polished diamond prices fell  in November as suppliers lowered prices in an effort to raise cash flow. Tight liquidity remains the biggest challenge facing diamond dealers and manufacturers. Demand is selective, with low trading levels, while the focus of the industry has shifted to consumer demand during the Christmas retail shopping season. 

The RapNet Diamond Index (RAPI™) for 1-carat laboratory-graded diamonds declined by 1.7 percent in November. RAPI for 0.30-carat diamonds fell 2.2 percent and RAPI for 0.50-carat diamonds dropped 1.6 percent. RAPI for 3-carat diamonds decreased by 1.8 percent during the month.

RAPI Table - December

Copyright © by Martin Rapaport

According to the Rapaport Monthly Report – December 2014, “Lower Prices,” sentiment among dealers and manufacturers is weak. U.S. demand is stable, but Far East markets are quiet due to economic and political uncertainties. Polished inventory levels are high across the pipeline. Profit margins are being squeezed as polished prices have declined since April, while rough prices have been relatively steady.

Rough trading is sluggish, with De Beers boxes selling at low premiums considering the long credit terms being offered on the secondary market. De Beers made minor adjustments to its prices at the November sight, while ALROSA reported that market prices rose 3 percent in the third quarter.

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Source Rapaport