Click here to download RapaportResearchReport-April2013.pdf
The March Hong Kong show exceeded expectations with both Chinese and Indian buyers active in the market. However, demand is limited to a specific range of commercial quality diamonds with 0.30-0.40ct., G-K, VS2-SI2 goods hot and good demand for medium to low qualities up to 2ct. There is strong demand for excellent cut triple EX goods which are in short supply and garnering premiums of up to 8 percent over VG-graded goods.
The RapNet Diamond Index (RAPI™) for 1ct. certified polished diamonds increased by 0.1 percent in March. RAPI for 0.3ct. diamonds rose 1.9 percent while 0.5ct. stones declined by 0.1 percent. RAPI for 3ct. diamonds increased 0.2 percent. During the first quarter, RAPI for 1ct. diamonds rose 0.4 percent but remains 11.1 percent below levels reached one year ago on April 1.
RapNet Diamond Index (RAPI™)
March 2013 1Q 2013 Y2Y Changes at April 1
RAPI 0.3 ct. 1.9% 5.6% 0.2%
RAPI 0.5 ct. -0.1% 0.5% -9.4%
RAPI 1 ct. 0.1% 0.4% -11.1%
RAPI 3 ct. 0.2% -0.4% -9.3%
Copyright © 2013 by Martin Rapaport
According to the just released Rapaport Monthly Report – April 2013, “Cutting Margins,” rough and polished diamond trading improved in March but cooled toward the end of the month during the Passover and Easter holidays.
Speculative rough demand influenced an estimated 4 percent increase in rough prices in the secondary market in March with premiums reaching around 5 percent. De Beers increased prices at its March sight by reducing the quality of diamond assortments and then again increased prices by 3-8% at this week’s April sight. Supply remains restrained and sightholder applications for De Beers goods have declined by approximately 20 percent from one year ago.
Diamond manufacturers are encouraged by the recent stability in the polished market and have enjoyed slightly better profit margins so far in 2013. However, they remain cautious as rough prices are persistently one step ahead of the polished narrowing their margins and further tightening cutting center liquidity.
“Rough prices are not sustainable at the current level of polished demand. Responsible diamond manufacturers, rough dealers and their banks should refrain from supporting risky speculative rough buying,” said Martin Rapaport, Chairman of the Rapaport Group.
Read the attached Rapaport Research Report, “Cutting Margins,” at www.diamonds.net/report or email: specialreports@diamonds.net.
Post published in: Business