Polished diamond prices were stable in March supported by steady dealer trading even though the outlook for consumer demand remains uncertain, according to a press release from the Rapaport Group.
In the first quarter of 2016, sentiment improved as polished diamond prices rose and profitability increased on select new production, continues the press release.
Rapaport expects a larger volume of polished diamonds to enter the diamond market in the near future based on an estimated 20% increase in manufacturing levels this year, which followed a decline of 40% in the second half of 2015. Demand for rough diamonds is expected to soften in the second quarter of the year as polished production has increased ahead of demand, explains Rapaport.
“The first quarter of 2016 was relatively positive for the diamond trade. However, trading was largely driven by dealers looking to replenish select inventory to fill existing orders. Jewelers and diamond dealers are carefully managing their inventory, while consumer demand is uncertain,” says a spokesman for Rapaport.
