Emphasizing the diamond trade’s recovery Rapaport’s press release stated: 'Robust retail sales are driving positive sentiment in the diamond market. Polished prices continue their upward momentum even as inventory levels gradually rise in some sizes. Steady demand, shortages in certain categories and high rough costs are supporting prices’.
Indicating that the RapNet Diamond Index (RAPI™) for 1-carat diamonds climbed 2.7% in June, and for 0.30- and 0.50-carat stones RAPI increased at a slower pace as inventory grew during the second quarter. Sales were weaker in the D to H, IF to VS range amid a shift in demand toward SIs… the lower the clarity, the better the market.
Reporting on the industry, the ‘release’ says that inventory of 1-carat diamonds remains relatively low. Delays persist at the Gemological Institute of America (GIA), which is seeing record submissions globally and a turnaround of over one month at its India labs. While polished suppliers are maintaining steady discounts due to high rough costs, Miners De Beers and ALROSA raised prices estimated 5% on average in June for goods above 1 carat. Rough sales remain strong. De Beers almost tripled its revenue in the first half of 2021 to $2.52 bn.
The statement adds that the polished dealers are cautious about buying at current valuations and are struggling to find the right goods at competitive prices and sees some worry that the industry cannot sustain its recent price uptrend through the summer. However, the market is optimistic for the holiday season due to the retail recovery in the US and China.
Summing-up, Rapaport Group Chairman Martin Rapaport said: “We expect to see a robust diamond and jewelry demand for the balance of 2021 and possibly well into 2022 depending on the level of US economic stimulus. Given the high percentage of US consumer goods coming from China, US stimulus is China stimulus. The short-term outlook, the one-year outlook is very good to excellent”.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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