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Diamond markets were quiet in April despite a slight improvement in sentiment towards the end of the month as shortages helped stabilize prices.
This is according to Rappaport’s Rapnet Diamond Index (RAPI) which said that many diamond suppliers did not lower their prices even though liquidity and profitability remain tight.
The index found that the price for 1-carat laboratory-graded diamonds rose 0.4% in April, while 0.30-carat diamonds fell 1.9%, 0.50-carat diamonds declined 1% and 3-carat diamonds fell 1.5% during the month.
During the first four months of the year, price for 1-carat diamonds increased 0.4%, but remained 13.9% down from the same last year (May 1).
According to Rappaport’s monthly report – “Muted Markets” – very few polished diamonds have been entering the market. Diamond manufacturers are still losing money on overpriced rough and refused about 30% of rough supply in the first quarter.
It said that diamantaires are focusing on buying polished rather than rough for manufacturing, however polished trading was soft due to weak demand from jewellery retailers.
Diamond buyer are said to be limiting their buildup of inventory in a “downward-trending” market and demand has been order specific.
