Over the past month, prices for certified diamonds have fallen. Margins of profit in the production of diamonds remained under pressure, as trade in diamonds slowed during the calm season, prices sagged, but prices for rough diamonds remained at a high level, Rapaport said in a press release.
The price index for diamonds RapNet Diamond Index (RAPI) for stones weighing 1 carat decreased during the reporting month by 2.4%. RAPI with respect to certified diamonds weighing 0.30 carats fell by 1.3%, and diamonds weighing 0.50 carats slightly increased by 0.3%. RAPI for diamonds weighing 3 carats fell in July by 0.5%.
As the July Rapaport report called Sluggish Trading says, in the United States and the far east there is a strong demand for commercial grade diamonds weighing less than 1 carat in the SI-I2 purity range and GM color.
There is a high demand for diamonds weighing 0.3-05 carats GM, purity VS2-I2, and there was a deficit in this category of products on the market. Many New York and Antwerp dealers in July went on vacation, which determined a further reduction in trade turnover. Some Indian diamond manufacturers have lowered prices for 1-carat diamonds due to low demand, overstocking of this market segment and the need to ensure the inflow of cash.
The results of the Indian International Jewelery Show (IIJS) were quite weak for diamond suppliers, but there is evidence of stability in India's domestic demand for jewelry and improving sentiment ahead of the October season of Diwali. Limited liquidity and the desire of buyers to purchase polished diamonds for the fulfillment of orders received, rather than replenishment of stocks, are noted.