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Diamond suppliers are under pressure as polished prices fell even further in September, according to figures released today by Rapaport.
The latest RapNet Diamond Index (RAPI) saw the price of 1-carat laboratory-graded diamonds drop 3% during the month.
RAPI for 0.30-carat diamonds declined 2.7%, while RAPI for 0.50-carat diamonds slipped 2.2%. RAPI for 3-carat diamonds fell 4.8% in September.
During the third quarter of the year, RAPI for 1-carat diamonds declined by 6.3%, while the index for the year until October 1 found the price of 1-carat diamonds was down 13.9% from a year ago.
The monthly index said that US demand was steady as the holiday season began to approach, but Chinese buyers were restrained due to a slowdown in economic growth in China and Hong Kong.
Consistent US consumer demand is believed to be providing stability and compensating for weak demand in other markets.
US jewellery retail sales increased by low single-digit percentage points since the beginning of 2015 and the trend is expected to continue throughout the Christmas shopping season.
The report added that manufacturers hope jewellers will reduce their inventories during the upcoming holiday season, stimulating stronger demand in the first quarter of 2016. It said, despite weak market conditions, such expectations have helped lift the mood in the diamond trade.
