In May, the diamond market was dominated by a lull. The main trading activity was observed in the US on the eve of the jewelry fair JCK Las Vegas, which was held from May 29 to June 2, said in a press release Rapaport. Diamond trade during the fair met expectations, and there was a high demand for inexpensive diamonds of commercial quality of VS-SI purity. Demand for large diamonds of higher quality was rather weak. Meanwhile, demand for diamonds in the Far Eastern markets was low, despite the active sales of jewelry in the May holidays.
The index of prices for diamonds RapNet Diamond Index (RAPI ™) for stones weighing 1 carat in May fell by 0.4%. Prices for diamonds weighing 0.3 carats remained stable, and stones weighing 0.5 carats went up by 0.8%. The price index for diamonds weighing 3 carats for the reporting month increased by 0.4%.
The monthly report Rapaport for June 2014, entitled "Steady Markets" (Steady Markets) reports that after the 1st quarter of the mood on the diamond market remain positive. As expected, activity declined in the second quarter, but healthy growth was observed in consumer markets in the US and Hong Kong.
Diamond trade in India was under pressure due to weak domestic demand and limited liquidity in the polished diamond sector. However, the optimism of market participants is supported by the results of the elections, following which Narendra Modi became prime minister. The players in the diamond sector hope that it will create a more favorable regime in the diamond and jewelry trade sector.
Trade in rough diamonds in the secondary market was quite active, despite the problems with liquidity. The production of diamonds slightly increased, as Indian cutters returned after the summer holidays, but the profit margins of producers remain extremely low.
It is expected that in the coming months trade in diamonds will be slightly restrained by large available reserves. Wholesalers and retailers will focus their efforts on fulfilling orders, and not on replenishing their diamond stocks.