Rapaport Press Release: Diamond Prices Stable Amid Slow April Trading

NEW YORK--(BUSINESS WIRE)-- The diamond market was seasonally quiet in April as dealers took vacation over the Passover and Easter holidays. Polished prices were steady, with manufacturers protecting their profit margins against recent rough-price hikes.

The RapNet Diamond Index (RAPI™) for 1-carat diamonds was flat in April. RAPI for 0.30-carat stones declined 0.6%, while RAPI for 0.50-carat rose 0.2%. RAPI for 3-carat diamonds slid 0.2%.

1-carat RAPI increased 2.8% in the first four months of the year, but was 1.3% lower than a year ago.

RapNet Diamond Index (RAPI™)
			April			Jan. - Apr.			Y2Y May 1, 2017 - May 1, 2018
RAPI 0.30 ct.			-0.6%			6.6%			1.2%
RAPI 0.50 ct.			0.2%			5.6%			-7.9%
RAPI 1 ct.			0.0%			2.8%			-1.3%
RAPI 3 ct.			-0.2%			-0.2%			0.4%
© Copyright 2018, Rapaport USA Inc.

Sentiment was mixed in April. Dealers were encouraged by a rise in first-quarter polished prices amid steady orders from US and Chinese jewelers. There was also optimism that consumer demand would continue to improve, following reports of good retail sales during Christmas and the Chinese New Year. The large jewelry brands and savvy independents are investing in omni-channel to capitalize on millennial buying trends.

However, the trade is still under pressure. Liquidity tightened in India’s manufacturing sector as local banks reexamined loans, following a $2 billion fraud case involving two prominent jewelry companies. Manufacturing profit margins are also being squeezed, as rough prices increased an estimated 3% to 5% since the beginning of the year.

Rough trading stayed robust in April, after a spike in demand during the first quarter helped the major miners reduce their inventory. Alrosa’s sales volume for the three-month period exceeded production by 5.9 million carats, and De Beers sold 302,000 carats more than it produced.

Polished inventory levels subsequently increased, with the number of diamonds listed on RapNet rising 9% to 1.3 million between January 1 and May 1.

Demand is selective, since it is difficult for wholesalers to replace diamonds they have sold at lower prices. Trading is expected to remain slow in May, and inventory will rise as new polished becomes available. Dealers have shifted focus back to the US and are preparing inventory for the May Las Vegas shows.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180501005788/en/

Rapaport Media Contacts:
US: Sherri Hendricks +1-702-893-9400
International: Avital Engelberg +1-718-521-4976
Mumbai: Prashant Bhojani +91-97694-66855
[email protected]

Source: Rapaport

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Hemisphere Energy Responds to Incident at Atlee Buffalo Oil Battery
• Berkeys Plumbing, A/C & Electrical Launches 2026 DFW Home Comfort & Energy Savings Report for North Texas Homeowners
• Tenable Holdings Set to Join S&P SmallCap 600