Polished diamond trading slowed in April due to sluggish demand at the start of a seasonally-quiet period, according to a press release from Rapaport.
While sentiment weakened as the positive momentum from the first quarter failed to gain traction, supplies significantly increased due to high rough sales and polished production in the first quarter, continues the press release.
The Rapaport Monthly Report highlighted concern among diamond traders that consumer demand is weak. While a steady U.S. market supported the diamond industry, sentiment in the Far East and European markets remained cautious, notes the press release.
Polished inventory levels rose during a period of restocking in the first three months. Jewelers avoided any unnecessary build-up of inventory and took goods on memo, which put additional
pressure on manufacturers’ liquidity.
Rough diamond demand is expected to slow from May as manufacturing levels have stabilized, continues Rapaport, while polished trading is also expected to remain slower this month. Amid declining global demand, dealers have shifted focus to the U.S. ahead of the Las Vegas shows that begin May 31.
