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Rapaport reported that polished diamond prices rose in February, continuing an upward trend that began in November. Though trading was slower during the period, shortages continued to support the market.
Rapaport reported that polished diamond prices rose in February, continuing an upward trend that began in November. Though trading was slower during the period, shortages continued to support the market.
As quoted in the market news:
The RapNet Diamond Index (RAPI™) for 1-carat, GIA-graded diamonds rose 0.3 percent in February. RAPI for 0.30-carat diamonds advanced 0.4 percent and RAPI for 0.50-carat diamonds grew 0.7 percent. RAPI for 3-carat diamonds fell 1.2 percent.
RAPI for 1-carat diamonds increased 1.3 percent during the first two months of the year but remains 7.8 percent below levels recorded one year ago.
The Rapaport Monthly Report demonstrates that polished prices remained firm ahead of the Hong Kong International Jewelry Show (March 1-7). Chinese buyers are expected to return to the market for the show but buying levels are uncertain due to the slowdown in China’s economy and stock market devaluations in 2016. Initial reports indicate that the Chinese New Year retail season was weak with Chow Tai Fook reporting sales fell 29 percent.
The uptrend in polished prices is being driven by shortages rather than growth in demand. Manufacturers increased their rough purchases and polished production in 2016 in order to fill shortages in the polished market. However, scarcities remain in the short-term as it takes three-to-four months for new polished production to enter the market.