Diamond prices have continued to rise during the second week of March, following a February trend, according to Alfa Bank analysts Boris Krasnozhenov and Yulia Tolstykh who based their market review on Rapaport data.
The 0.3-carat diamonds saw the best price dynamics in the reporting period across all categories, appreciating by 5.38%. Prices for 0.5-carat diamonds rose by 1.85%. These two categories of diamonds represent the majority of the mass segment demand, and the rise in prices demonstrates a decrease in stockpiled inventory in the diamond pipeline, Alfa Bank analysts note.
Prices for 3-carat diamonds also rose last week in response to an increased demand.
During February, which is a seasonally weak month for diamond trading, Rapaport reported an increase in prices for popular categories of diamonds thanks to a decrease in inventory.
The RapNet Diamond Index (RAPI) for 1-carat diamonds rose by 0.2% in February after falling by 2.3% in January. The index for 0.3-carat diamonds rose by 3.7% (a decrease of 0.4% in January) with strong demand for D-F color, IF and VVS1 clarity diamonds. The index for 0.5-carat diamonds was up by 0.2% in February after falling by 0.6% in January, while RAPI for 3-carat stones was up 0.3%, compared to a drop of 0.9% in January.
De Beers has noted a supply deficit of large diamonds weighing over 5 carats during its latest sale, which characterizes the structure of the diamond miner's accumulated reserves, Alfa Bank’s analysts said.
Earlier, sources cited by Rapaport reported that prices for most diamond categories were primarily unchanged at De Beers’ trading session on February 24. This may be a sign of a slight improvement in diamond market sentiment amid stabilizing demand and a decrease in supply, the agency said. In December 2024, De Beers was forced to cut prices significantly, reducing them by more than 10% across the entire range of goods.
ALROSA has also maintained its prices unchanged during a trading session in February, sources told Rapaport.
Diamonds larger than 5 carats were in short supply, which clients attributed to both De Beers' production cuts and its strategy to reduce supply. Many market insiders felt positive about the fact that these categories, which had sold better at the last few sights, were difficult to find this time, Rapaport explained.
In the second-hand market, prices for diamonds smaller than 0.5 carats have also increased, Rapaport reported.
Alfa Bank analysts believe that data on Rapaport diamond index for the first half of March is positive both for the diamond market sentiment and for diamond miner ALROSA. Increased buying activity in retail segment means less inventory build-up in midstream, which earlier determined the appetite for rough diamonds in the pipeline, Alfa Bank analysts noted in the market review.
Theodor Lisovoy, Managing Editor, Rough&Polished
