The diamond industry experienced a sluggish start to 2024, with subdued holiday sales and declining prices, according to the Rapaport Group. While the US holiday season met the industry’s modest expectations, the overall market struggled. Prices fell, though there was slight improvement in 0.30- to 0.50-carat, D to F, IF to VVS2 diamonds. Larger fancy-shaped diamonds of 3 carats and above performed comparatively better.
The RapNet Diamond Index (RAPI™) for 1-carat round diamonds (D to H, IF to VS2) declined by 2.3% in January. Smaller diamonds saw milder fluctuations, with 0.30-carat and 0.50-carat categories dropping 0.4% and 0.6% respectively, while 3-carat stones decreased by 0.9%.
RapNet Diamond Index (RAPI™)
A significant industry development came with De Beers and the Botswana government finalizing a historic agreement to extend their joint venture, Debswana’s mining licenses, beyond 2029. Both parties will collaborate to promote the natural diamond sector.
Rapaport also reported that the rough diamond market remained slow, with De Beers opting to maintain pricing while reducing sales at its first sight of the year.
Regulatory changes are also affecting the trade landscape. The US Customs and Border Protection (CBP) now requires polished diamond importers to disclose the country of origin. However, diamonds that entered the market before sanctions on Russian diamonds may be exempt from these new rules. Rapaport is introducing its own Rapaport Ethical Sourcing Standard (RESS) and Rapaport Traceability Standard (RTS) to enhance transparency in the market.
On the global front, US trade tensions are escalating, with potential tariffs looming over Canadian diamonds. If implemented, these tariffs could significantly impact trade between the two nations. Meanwhile, the Chinese holiday season has not sparked a demand resurgence, and diamond demand in India remains steady.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
