1ct. RAPI down 0.1% in February
Diamond trading was quiet in February as the trade prepared for the Hong Kong International Jewellery Show, which ran from March 1 to 5.
The market is segmented. Small goods are doing better than those over 0.50 carats. The RapNet Diamond Index (RAPI™) for 0.30-carat polished rose 3.5% during February, stimulated by a supply decline in the past year and a revival in Chinese demand.
RAPI for 1-carat diamonds slid 0.1% during the month and 21.7% year on year. Steady demand for VVS clarity in the RAPI category range offset weakness in VS. There were also sharp declines in SI goods.
| RapNet Diamond Index (RAPI™) | |||
February |
YTD
|
Year on year
|
|
| RAPI 0.30 ct. | 3.5% |
6.7% |
-7.9% |
| RAPI 0.50 ct. | 0.1% |
-0.1% |
-19.2% |
| RAPI 1 ct. | -0.1% |
-1.0% |
-21.7% |
| RAPI 3 ct. | -1.0% |
-1.2% |
-15.2% |
© Copyright 2023, Rapaport USA Inc. |
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Dealers were cautious due to lingering US economic uncertainty. Retail jewelers have not replenished inventory as they usually do in the first quarter. However, Valentine’s Day shopping boosted US jewelry sales, which climbed 6.5% year on year in January, according to Mastercard.
The focus shifted to the Far East after China lifted its Covid-19 restrictions and reopened its borders. While consumer spending is taking time to resume, jewelers expect a release of pent-up demand in the coming months.
Suppliers have increased discounts — particularly for 1-carat and larger goods — to encourage Chinese buyers at the show, reduce excess inventory and improve liquidity. Many exhibitors still left the show disappointed.
The rough market was steady in February as the drop in Alrosa supply prompted shortages. Factories are gradually raising polished production after a prolonged period of low output, anticipating better demand in the year’s second half. De Beers raised prices on small rough for the second month in a row. Prices have also increased at auctions. New sanctions that the G7 nations intend to impose on Russian-origin diamonds will likely stimulate demand for non-Russian supply.
Sentiment was ultimately mixed in February. Despite the prevailing caution, polished trading is expected to improve as Chinese buyers gain confidence and US retail gains momentum.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230307005154/en/
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