diamond markets were dominated by a seasonal lull and diamond prices fell slightly, Rapaport said in a press release. The jewelry fair JCK Las Vegas, which was held at the beginning of the month, demonstrated a steady demand for commercial grade diamonds in the US, high demand for inexpensive polished "piqué" diamonds and a rather weak demand for large and high-quality stones. The June Fair in Hong Kong disappointed diamond dealers, who concluded that cautious sentiment prevailed in the Far Eastern markets.
The price index for diamonds RapNet Diamond Index (RAPI ™) for stones weighing 1 carat in June fell by 0.5%. Prices for diamonds weighing 0.3 carats and 0.5 carats rose by 0.5% and 0.3% respectively. The price index for diamonds weighing 3 carats for the reporting month fell by 0.7%.
During the second quarter, prices for diamonds were down, the Rapaport monthly report, "2Q Slowdown", said.
Retail jewelry companies have replenished their stocks after the Christmas season in the first quarter, and since then, polished purchases have been carried out to fulfill the orders received. Delays in the evaluation of diamonds by the Gemological Institute of America (GIA) led to a reduction in the supply of certified stones in the laboratory and supported prices for them in a weak market.
The margins of the profits of diamond producers remained small. Prices for rough diamonds in June were stable, and activity was observed in the secondary market. Despite the liquidity problems, there is a strong demand for rough diamonds, while mining companies maintain production volumes.
It is expected that in July and August the market will be dominated by a lull, as dealers in Antwerp, New York and Ramat Gan leave for the summer holidays. The expectations for the July International Indian Jewelery Fair (IIJS) have increased, which is due to the revival of the local Indian market after the election of a new government.