Polished diamond exports have been slow at the India trade show. Diamond suppliers are well aware of the fact that polished diamond exports tend to be weaker in July. Additionally, other factors to consider are that international buyers were largely absent from the India International Jewellery Show. Prices in July often softened due to weak seasonal demand. The RapNet Diamond Index for a 1-carat diamond fell a bit over one percent during the month of July between the 1 and the 21st. RAPI for .30 carat diamond declined .9 percent, and the RAPI for a .50- carat diamond was virtually flat.
RAPI for .30 carat diamond declined .9 percent, and the RAPI for a .50- carat diamond was virtually flat. The RAPI for 3-carat diamonds only dropped slightly, by .1 percent. The diamond manufacturers mention that there has been an increase in the overall supply of 1 -carat diamonds on the market. This could be due to the fact that the Gemological Institute of America improved its turnaround time for grading the diamonds. Although the demand for the 1 and 1.50-carat diamonds has a steady flow, the quick turnaround, and influx
The diamond manufacturers mention that there has been an increase in the overall supply of 1 -carat diamonds on the market. This could be due to the fact that the Gemological Institute of America improved its turnaround time for grading the diamonds. Although the demand for the 1 and 1.50-carat diamonds has a steady flow, the quick turnaround and influx in supply of the product is partly responsible for the softening of prices in the market. The demand for pointer-size GIA dossiers remains abundant, and only possibly slightly smaller than the demand of previous months.
The turnaround time for these diamonds remains about three to five months for these goods by the GIA. The demand for .30-carat to .69-carat, G minus, VS to SE goods is stable although some shortages in the market are visible. This contrasts with the weakening demand for the .70 carat through to the .90 carat diamonds. This slower than normal activity in the trading areas have continued a trend that was observed in the second quarter of 2014. Polished diamond exports for the early part of 2014 were strong. Followed by a diminishing demand for the global polished diamond. This trend has caused for the main trading centers to report gains for the year to present. The situation in India is also indicative of Belgium's diamonds and percentages due to trading slow at India show.
Throughout the second quarter, polished exports in Belgium fell 4 percent year on year to $3.65 billion. This contrasted with polished imports that were flat at $3.75 billion. The excess of exports minus imports, or the Net polished exports, fell to a deficit of $99 million. Thus implying that Belgium was a net importer of polished during the quarter. As a trading center that also engaged in manufacturing activity, it would make sense for Belgium to be a net exporter of polished, and that was true if the full year to date is analyzed as a whole.
Throughout the first six months of 2014, both polished exports, as well as imports, rose about 6 percent which was exceeding even the levels seen during the speculative boom of the first half of 2011. Net polished exports also grew about 24 percent to $173 million. Dealers analyzing the situation note that the market in fact in a far healthier position than it was in 011 when the boost in the trading aspect of the market in the first half of the year was driven by speculation and subsequently downturned to a trend that is still relevant and evident to date.
Sight holders have therefore reasoned that they currently need rough in order to have their polished inventory ready. They also stress that the polished prices will have to increase significantly during that time. That would be if they are able to gather profits from the rough diamonds that they are currently buying.
Despite these precautions, the prospect of polished prices increasing significantly is unlikely. Many are betting on rough prices softening in the coming months. This would improve manufacturing margins. In conclusion, the cause of trading slow at the India show consists of a plethora of issues. Such as a lack of international buyers to a faster turnover time by the GIA.
Polished Diamond Exports and the trade show in India were soft.