Diamond market improves as Holidays Approach

Diamond trading improved in late October after various Jewish, Indian and Chinese holidays.

Mumbai (Maharashtra) [India] Nov 06 (ANI/BusinessWire India): Diamond trading improved in late October after various Jewish, Indian and Chinese holidays. Dealers are focused on filling holiday orders as US jewellers prepare inventory for the season. Shortages are supporting prices of nonfluorescent RapSpec A3+ goods.

Polished prices stabilized in October. The RapNet Diamond Index (RAPI™) for 1-carat diamonds was down 0.1 per cent, having dropped 4.7 per cent since the beginning of the year. Supply of better-quality diamonds has diminished since July as manufacturers reduced their polished production and rough purchases.

India, which accounts for an estimated 90 per cent of production, saw its rough imports fall 19 per cent year on year to $3.11 billion in the third quarter and its polished exports drop 20 per cent to $5.09 billion. However, the number of diamonds listed on RapNet has declined only 3 per cent since July 1 to 1.45 million. De Beers has kept production in line with sales volume this year and restricted supply through its flexible buyback policy in September. Alrosa's production exceeded sales, resulting in its inventory rising 40 per cent year on year to 21.7 million carats at the end of third quarter.

Excess inventory continues to burden the diamond industry at the mining and manufacturing levels as retailers remain conservative with their purchases. Mining companies will need to reduce production in 2020 to help restore the balance. Rapaport calls on the industry to invest in aggressive marketing to stimulate consumer desire for diamond jewellery during the holiday season. Rapaport will make a deeper assessment of market conditions in its Diamond Trends Webinar on November 6. To register, click here.

These trends are also evident in RapNet data published in the October Rapaport Research Report. The report includes an analysis of the potential impact automation will have on the diamond manufacturing sector. This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)

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