April certified polished diamond prices stable
NEW YORK, May 6, 2012 – Certified polished diamond prices were stable in April although trading remained weak, the Rapaport Group said.
Activity in the diamond trading centers slowed as diamantaires took a break during the Passover and Easter holidays.
India is under pressure as the new 2% polished diamond import tax has drastically reduced 1Q 2012 polished imports by 71% and exports by 42%.
Thousands of Indian jewelry shops also went on strike in protest against new excise taxes.
Demand in the consumer markets was stable but wholesalers and retailers continue to maintain low inventory levels.
Buyers are focused on commercial-quality diamonds.
There is continued improvement in demand for fancy shape diamonds.
Price conscious consumers are moving to fancies as their prices are much lower than rounds. Price differentials encouraged cutters to manufacture rounds instead of fancies in 2011, resulting in a current shortage of fancies.
In April, the RapNet Diamond Index (RAPI) for 1.00 ct. polished diamonds fell 0.2%. The 0.3 ct. category increased by 0.4 percent while 0.5 ct. rose 0.5 percent.
RAPI for 3.00 ct. diamonds increased 1.2 percent.