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Demand for polished diamonds improved in January but prices continued to drop, according to the RapNet Diamond Index (RAPI).
The price of 1-carat laboratory graded diamonds fell 0.4% in January, the price of 0.30-carat diamonds dropped by 0.9%, price for 0.50-carat diamonds declined 1%, while price for 3-carat diamonds was flat during the month.
According Rapaport, jewellers are resisting buying large quantities of diamonds as inventory levels remain higher than usual for this time of year.
Rapaport added that expectations are low for jewellery sales during the Chinese New Year after a disappointing Christmas shopping season.
The declines in January have extended the downtrend that started in April 2014, with polished diamond prices remaining significantly below levels recorded one year ago. Price for 1-carat diamonds is down 10.2% year-on-year.
Martin Rapaport, chairman of the group, said: “Rough prices must come down to the extent that diamond manufacturing is once again a profitable activity. Diamond prices can only be sustained and increased by raising demand, rather than limiting supply.”
