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Economy

Polished diamond prices dip in April

Polished diamond trading slowed in April due to sluggish demand at the start of a seasonally-quiet period, according to the Rapaport Group.

The group’s RapNet Diamond Index (RAPI) found the price of 1ct, GIA-graded diamonds, slipped 0.3% in April, while the price of 0.3ct and 0.5ct diamonds fell by 1.3% and 0.3%, respectively. The price of 3ct diamonds dropped 2.2%.

The price of 1ct diamonds rose 1.2% in the first four months of the year, but is still down 4.6% from a year ago.

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The Rapaport monthly report highlighted concern among diamonds traders that consumer demand is weak. It said while a steady US market supported the diamond industry, sentiment in the Far East and European markets remained cautious.

Polished inventory levels rose during a period of restocking in the first three months of the year, although jewellers avoided any unnecessary build up of inventory and took goods on consignment, which put additional pressure on manufacturers.

The report said manufacturers’ profit margins were squeezed as rough prices remained high during a period of weaker polished trading. Both rough demand and polished trading is expected to slow in May, according to the report.

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