1 ct. RAPI -0.2% in October.
The diamond trade was busy in October as suppliers filled orders for the holiday season. The US market is fueling optimism, while there is caution about China’s prospects. Polished demand is outpacing supply, but inventory levels are rising and buyers are pushing for higher discounts.
The RapNet Diamond Index (RAPI™) for 1-carat diamonds slid 0.2% in October. The measure was 13.6% above its level one year ago on November 1.
|
RapNet Diamond Index (RAPI™) |
|||
|
October |
Year to date |
Year on year |
|
|
RAPI 0.30 ct. |
-0.9% |
-2.4% |
-4.8% |
|
RAPI 0.50 ct. |
-0.7% |
-0.8% |
-2.6% |
|
RAPI 1 ct. |
-0.2% |
10.4% |
13.6% |
|
RAPI 3 ct. |
0.7% |
7.8% |
13.3% |
© Copyright 2021 by Rapaport USA Inc.
Manufacturers raised polished production before Diwali, beginning November 4, as they typically close for two to three weeks during the festival. More diamonds are coming into the pipeline and grading companies are receiving record submissions at their laboratories. The Gemological Institute of America (GIA) continues to see a six-week turnaround at its Mumbai facility.
Inventory on RapNet grew 42% year on year to 1.72 million unique stones as of November 1. The increase was driven by a spike in availability of 0.30- and 0.50-carat sizes — typical Chinese goods. These categories were up 97% and 94% respectively versus last year.
Still, mining companies report a shortfall in rough supply as demand remains robust. Manufacturers note it is difficult to find profitable supply after prices rose an estimated 20% since the beginning of the year, according to the Rapaport Rough Price Index. Diamantaires anticipate a good holiday period and are preparing for strong orders in the first quarter when jewelers and dealers replenish inventory sold during the season.
Retail jewelers are upbeat for the November-December peak selling period, as highlighted in the latest issue of Rapaport Magazine.
