Image credit: Rapaport
Diamond market sentiment improved in September as jewelers started to prepare for the fourth-quarter holiday season. Polished prices firmed due to shortages and rising holiday orders, says a press release from Rapaport.
According to the report, manufacturing has gone down drastically since March due to the coronavirus constraints. Large Surat-based factories are currently operating at an estimated 60% to 70% of capacity.
Selective buying has left suppliers unable to fill orders due to the scarcity of stones in specific categories. Demand is steady and prices firm for 1-carat, D-F, IF-VVS goods. Inventory of 0.30- to 0.50-carat diamonds has increased in recent months as the easing of Indian government restrictions has allowed manufacturers to raise production.
The rough market was robust during September and manufacturing profit margins improved after De Beers lowered prices of rough diamonds below 1 carat by 5% to 10% at its sight.
Also, the report adds that jewelers are mainly focused on sourcing memo goods now. However, some jewelers are beginning to make bulk orders for the season. The bridal category is expected to support the broader jewelry market.
Aruna Gaitonde, Editor in Chief fo the Asian Bureau, Rough&Polished
