Rapaport Press Release: Diamond Industry Under Pressure Amid Slow Sales
03 July 2024 - 12:15AM
Business Wire
1-carat RAPI down 3.6% in June.
Diamond prices declined in June as sales dropped and inventories
grew. Indian manufacturers reduced production, but sales fell at a
sharper rate due to weak demand. This led to an oversupply and
pressure to sell.
Synthetics continued to take market share from natural diamonds
and will likely do so throughout 2024. Chinese diamond demand
remains very weak as consumers turn to gold jewelry as a store of
value. US retail sales were mixed in June. Indian jewelry demand,
while healthy, saw a seasonal lull.
The RapNet Diamond Index (RAPI™) for 1-carat goods — reflecting
round, D to H, IF to VS2 diamonds — fell 3.6% in June. This was a
slightly gentler decline than in May. However, the drop in the
0.30-carat RAPI accelerated to 6% in June. The index for 0.50-carat
diamonds fell 4.8%, and prices of 3-carat stones went down 2%.
Prices for round, 1-carat, D to H, SI diamonds slid 0.5%.
RapNet Diamond Index (RAPI™)
Index
June
Year to Date Jan. 1, 2024,
to Jul. 1, 2024
Year on Year Jul. 1, 2023,
to Jul. 1, 2024
RAPI 0.30 ct.
1,206
-6.0%
-15.0%
-23.3%
RAPI 0.50 ct.
1,913
-4.8%
-3.4%
-20.2%
RAPI 1 ct.
5,328
-3.6%
-10.9%
-22.8%
RAPI 3 ct.
20,164
-2.0%
-8.4%
-14.5%
© Copyright 2024, Rapaport USA Inc.
The number of diamonds on RapNet rose 6% between April 1 and
July 1, and now stands at 1.67 million. Indian manufacturers have
continued producing polished to keep workers employed and maintain
access to rough supply and credit lines.
The secondary rough market was quiet due to sluggish polished
demand. De Beers’ 2024 rough sales through June fell 20% year on
year to $1.95 billion. Some sightholders refused boxes that would
result in losses. Rapaport expects De Beers’ revenue to continue to
decline in 2024 due to competition from synthetics.
Rapaport believes synthetics will dominate the US bridal segment
in 2024, accounting for over 50% of engagement-ring purchases.
However, the synthetic bridal market will collapse in 2025 as their
very low prices will make them unsuitable for engagement rings.
Natural diamond demand will come back strong as consumers return to
traditional engagement rings whose value is appropriate for the
gift of marital commitment.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240702992037/en/
Media Contacts: media@rapaport.com US: Sherri Hendricks
+1-702-893-9400 International: Avital Engelberg +1-718-521-4976