Small Diamonds Drive Diamond Price Recovery in September: Rapaport
Diamond prices extended their recovery in September, with smaller, higher-quality stones recording the strongest gains as tighter availability combined with improving demand to support the market, according to Rapaport.
The Rapaport Trade Diamond Index (RAPI™) for round, D-H, IF-VS2 diamonds rose 3.2% for 0.30-carat stones and 2.5% for 0.50-carat diamonds during the month. The 1-carat index advanced 0.3%, marking its second successive monthly increase, while the 3-carat index gained 1.5%, with most of the improvement occurring during the second half of September.
Smaller diamonds have remained the strongest performers so far this year. The 0.30-carat and 0.50-carat indices increased 15.1% and 5.8%, respectively, year to date. Rapaport also announced price increases on September 11 for selected round diamonds in the 0.30- to 0.69-carat, D-G, VVS1-SI1 categories, following recent market gains.
Market confidence showed signs of improvement throughout September, supported by active buying from US retailers for round diamonds. Demand for 1- to 2-carat, F-I, VS2-SI2 diamonds continued to strengthen, while restricted availability in certain categories provided additional price support. Diamonds weighing 2 carats and above also performed positively.
However, smaller diamonds in lower-quality categories continued to face challenges because of growing competition from lab-grown diamonds.
Polished diamond manufacturing remained relatively subdued during the month. Trading activity was also affected by the Jewish holidays in the US, Belgium and Israel, as well as religious festivals across India.
The Jewellery & Gem WORLD Hong Kong exhibition highlighted the market’s uneven recovery. Demand for diamonds weighing 2 carats and above remained healthy, although participation from Chinese buyers was limited. Smaller, lower-quality stones continued to face selling difficulties, while finished jewellery recorded strong demand.
Uncertainty around the global diamond mining sector also remained a key market consideration. Anglo American’s ongoing process to sell De Beers continued to influence sentiment, while the latest De Beers sight indicated a stable but cautious environment for rough diamonds.
Consolidation within the mining sector also progressed. Mountain Province agreed to transfer its 49% stake in the Gahcho Kué mine to De Beers, which already holds the remaining 51%, as part of a restructuring designed to settle Mountain Province’s outstanding debt to De Beers. Meanwhile, Petra Diamonds is assessing strategic alternatives, including the potential sale of assets.
According to Rapaport, the continued recovery in diamond prices is being supported by two key factors: improving consumer demand and constrained supply. Round diamonds have outperformed fancy shapes, partly because production of rounds experienced a sharper decline during earlier periods.