Diamond trading improved in March after a cautious first quarter with better than expected demand at the Hong Kong show, according to the Rapaport Monthly Report.
The report said suppliers were willing to compromise on price in order to generate liquidity before new, better quality polished production becomes available.
This slight improvement of prices is also reflected in the RapNet Diamond Index (RAPI) as 1ct polished diamonds edged up 0.1% in March. However, polished diamonds were down by 1.1% overall during the first quarter of 2017.
Figures show there was a good demand for 0.30ct to 0.49ct diamonds which is attributed to the success at the Hong Kong show held in February.
The Rapaport Monthly Report states that jewellers have reduced inventory requirements and are replacing higher-value inventory with lower-priced goods, reflecting consumers’ spending preferences.
Manufacturing profits remained tight during the quarter as rough prices rose an estimated average 2% to 3%. Rough trading was strong during March as De Beers reduced supply during the month.
A press release stated: “Diamond trading is expected to slow in April during the Passover and Easter spring break. While dealers remain optimistic following the Hong Kong show, they’re aware that market conditions continue to change, which will impact activity in the medium to long term.”