Diamond prices decline in September

Diamond prices dropped in September as the market continued to suffer from an oversupply, according to Rapaport’s RapNet Diamond Index.

As a result, Indian manufacturers reduced rough-buying and polished production to rebalance supply and demand. This adjustment also led to a decline in polished inventories, but will take a few weeks for them to fall to healthy levels.

The RapNet Diamond Index (RAPI™) for 1-carat goods, reflecting round, D to H, IF to VS2 diamonds, slid 4.1% in September.

Meanwhile, the RAPI of the 0.30-carat, 0.50-carat and 3-carat stones declined 4%, 4.2%, and 2.5% respectfully.

Lower-quality stones saw a gentler decline, with prices of round, 1-carat, D to H, SI diamonds slipping 3.5% in September. Prices of fancy shapes also decreased less sharply than rounds.

Additionally, rough diamond demand was sluggish as manufacturers reduced their inventories. De Beers continued to allow deferrals and keep rough prices firm at its September sight.

Rapoport revealed that insiders have reported that Alrosa, a Russia-based mining company, also told customers it would also maintain prices for the time being.

Rapaport stated that this indicates that the two miners have “no intention of flooding the market”.