LAS VEGAS--(BUSINESS WIRE)--Diamond prices declined in October but stabilized in the month’s second half. US buyers purchased for the holiday season ahead of India’s Diwali shutdown. However, manufacturers were under pressure to sell at deep discounts.
The RapNet Diamond Index (RAPI™) for 1-carat diamonds — reflecting round, D to H, IF to VS2 diamonds — fell 1.5% in October. The index dropped 0.6% for 0.30-carat stones, 2% for 0.50 carats, and 0.5% for 3 carats. The declines were gentler than in September. Prices of pears and ovals were more stable than rounds.
| RapNet Diamond Index (RAPI™) | ||||
| Index | October |
Year to Date
|
Year on Year
|
|
| RAPI 0.30 ct. | 1,020 |
-0.6% |
-28.1% |
-27.1% |
| RAPI 0.50 ct. | 1,643 |
-2.0% |
-17.0% |
-14.2% |
| RAPI 1 ct. | 4,618 |
-1.5% |
-22.8% |
-22.1% |
| RAPI 3 ct. | 18,272 |
-0.5% |
-17.0% |
-17.3% |
© 2024, Rapaport USA Inc. |
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The Indian inventory crisis became less intense as manufacturers reduced rough imports and production while keeping polished exports steady ahead of the US holidays.
Supply was patchy. Inventory of SIs rose as manufacturers produced them in response to demand. Round, 2- to 3-carat, D to I, VS2 to SI2 diamonds with no strong inclusions were hard to find. Manufacturers held large quantities of less-desirable items, while oversizes and perfect goods were in demand. The number of diamonds on RapNet rose 0.8% during the month, totaling 1.7 million on November 1.
Trading in the US, Belgium and Israel was slow due to the Jewish festivals. India shut down for Diwali in late October, with manufacturers closing for an expected three to four weeks and sales offices for 7 to 10 days. The industry hopes this will improve the inventory situation.
A seasonal rise in sales boosted sentiment. US retail was steady ahead of Christmas, with wholesalers preparing for last-minute calls. Domestic Indian demand was robust leading up to Diwali and the wedding season.
Rough demand was weak at the De Beers sight that began November 4. The company indicated it might lower its 2024 production plan, which currently stands at 23 million to 26 million carats.
