Trading volume did not meet expectations for time of year.
Rapaport has released its latest certified polished diamond report for October, describing a fall in prices owing to slower trading than expected for the time of year.
The report said the US continues to be the dominant market for polished ahead of the Christmas season, however despite the recent Diwali celebrations in India, the country’s demand was weak and Chinese demand was soft after the nation’s National Day Golden Week.
In terms of carat weight, demand for October showed that trading was selective, with steady demand for 0.30ct to 0.50ct goods in commercial qualities of H to K colours and SI to I1 clarities.
The RapNet Diamond Index for 1ct certified diamonds fell 1.7% in October, while the index for 0.30ct diamonds rose 0.4% during the month, while RAPI for 0.50ct diamonds increased 0.2%. The RapNet Index for 3ct diamonds declined 0.7%.
According to Rapaport’s monthly report for October, polished prices softened due to weak global demand and tight market liquidity. US retail buyers were delaying inventory purchases for the holiday season amid persistent price uncertainty and diminished consumer confidence.
Indian diamond traders faced uncertainty prior to the Diwali festival that began on November 1 amid unconfirmed reports that the government may raise the import duty on polished diamonds from 2% to 5%. Initial reports about Diwali signal a slump in gold and diamond jewellery demand.
Rough diamond trading on the secondary market remains quiet with most De Beers boxes selling for discounts or with long-term credit.
According to Rapaport, polished diamond trading is expected to improve before the end of the year influenced by a late surge in US holiday demand and strong, selective competition to source the right "in-demand" goods. Forecasts for the season remain below that of previous years.