Price of one carat stones drops 13.7% year-on-year.
The price of polished certified diamonds fell last month as Far East and Indian demand stalled due to the collapse of the Indian Rupee.
Rapaport’s latest diamond report has revealed that the price for one carat diamonds dropped 13.7% year-on-yea in June.
In the US demand was described as “steady” but wholesale is still selective as consumers look for more affordable price points.
Last month the RapNet Diamond Index (RAPI) for 1ct certified diamonds fell 1.6% while 0.3 ct stones declined by 1.2%. Half-carat diamonds dropped 1.4%.
During the first half of 2012, RAPI for 1ct diamonds fell 3.6% with the steepest declines occurring during the latter part of May and through June.
Half-carat diamond price have dropped 3.6% during H1 while 3 ct. stones fell 5% during the half-year.
According to the Rapaport’s Research Report, Price Pressures, polished trading has slowed with increasing concern about the global recession.
Far East demand is sluggish as wholesale and retail buyers expect further price declines. Indian diamond manufacturers and dealers are under pressure due to high rough prices, the depreciating rupee, high inflation and a declining economy.
Liquidity is tight and banks are viewing new proposals with greater caution than before.
Rapaport estimates suggest that DTC sales fell 19% year on year to about $2.83 billion (£1.82 bn) in the first half of 2012 as prices rose about 5 percent and the volume of supply dropped.
Rapaport adds that the second half of 2012 is expected to be “challenging” for the diamond industry as Far East demand is projected to remain conservative in the near-term while India’s industry crisis may be more prolonged.
Polished prices are coming under increasing pressure as global diamond market sentiment is expected to remain weak, said its latest report.