the situation in the diamond markets improved, but diamond producers are still concerned about high commodity prices, which lead to a reduction in profit margins. Demand for diamonds in the first month of the year grew due to the activation of the US market, while buyers in the Far East remained cautious, and jewelry companies have already completed their purchases on the eve of the Chinese new year, according to a Rapaport Group press release received by Rough & Polished.
In January 2014, the price index RapNet Diamond Index (RAPI ™) for diamonds weighing 1 carat increased by 1.2%, while RAPI for smaller diamonds increased more significantly as demand for diamonds from 0.30 to 0.59 carats. In general, there is a good demand for diamonds, accompanied by the GIA dossier.
In a February 2014 Rapaport report called "Optimistic Markets", it is noted that after the Christmas season in the US, the results of which surpassed expectations, diamond dealers gained confidence. The stocks of diamonds in the diamond pipeline were depleted, which was the reason for the growth in demand during the month. The margin for diamond cutters grew due to the rise in price of diamonds made from raw materials, which was purchased several months ago at reduced prices. At the same time, diamond suppliers were cautious, fearing higher prices for their products, since their buyers need stability.
The diamond producers are increasing their capacities after the reduction in purchases of raw materials, which was observed in the second half of 2013. In January, there was a revival in rough diamond markets, and sellers of De Beers boxes on the secondary market were getting good bonuses. De Beers' sightholders are concerned about a possible additional price increase in February, which will not be accompanied by a rise in prices for diamonds in the coming months.
Diamond companies are also expecting an increase in the supply of diamonds, as in 2013, according to Rapaport, global rough diamond production increased by 10%.