Prices of diamonds listed on the Rapaport trading network have mostly decreased in October after September peaks, as manufacturers ramped up their output and inventories increased.
The Rapaport Trade Diamond Index (RAPI) for round, D-H, IF-VS2, 1-carat diamonds decreased 0.9%. Prices for smaller 0.30-carat and 0.50-carat diamonds fell 5.5% and 2.3%, respectively. The 3-carat index rose 0.9%.
In a monthly report, Rapaport noted that the number of 0.30-carat rounds grew 165% between June 1 and November 1, and listed two factors that may be responsible for the surge in inventories.
"Manufacturers had ramped up production of those sizes in response to the recovery that took place between April and September," it said.
"In addition, the rise in certified 0.30-carat diamonds may have been due to some cutters getting grading reports for that size again after skipping certification when prices were lower."
However, the trade network’s analysts argue that the long closure of diamond cutting offices during the Diwali festival in India will enable manufacturers to rebalance their stocks, as the attention of the industry now turns to the Thanksgiving weekend and the holiday season.
Theodor Lisovoy, Managing Editor, Rough&Polished
