SIs saw gentler declines than the RAPI categories, reflecting US demand. Prices for round, 1-carat, D to H, SI diamonds fell 3.2%.
Weak sales led to an increase in polished inventory. The number of diamonds on RapNet rose 2% in July for a total of 1.7 million and jumped 9% between April 1 and August 1.
Indian diamond manufacturers reduced their production in July to realign their inventory with current demand. It will take six weeks before these cuts impact inventory levels.
Rough demand was sluggish. De Beers allowed sightholders to refuse goods at its July sight and offered 30% buybacks for certain categories. Sales were under $200 million, insiders estimated.
Luxury brands bought fewer diamonds than in previous years, creating weakness in high-end goods. LVMH’s jewelry and watch sales declined 5% year on year to $5.58 billion in the first half of 2024. Slow US bridal demand put pressure on Tiffany & Co., according to LVMH.
Sales in China remained weak due to the slow economy and due to shoppers shifting away from diamonds as an investment. Consumers with money preferred to spend at overseas tourist destinations rather than domestically.
India’s jewelry industry expects the India International Jewellery Show (IIJS), which runs from August 8 to 13, to signal strong domestic demand ahead of Diwali. However, expectations for the September Jewellery & Gem World (JGW) Hong Kong show are low amid sluggish Chinese demand.
