According to three of the leading polished price indexes - Rapaport, IDEX and PolishedPrices - September polished diamond prices trended downward, though they steadied toward the end of the month. PolishedPrices pulled the alarm bell mid-month, with the headline, "Polished index falls to lowest level since December 2009", noting that "The overall index is 4.7% lower than this time last year and has lost 2.2% since the start of the year," before bouncing back the next week. One-carat goods remained relatively steady for the month, while 0.5 carat fine goods took a bit of a tumble, and are down about 9% for the year thus far, an assessment Rapaport shares. IDEX noted a slight dip during the month, yet notes, "The market has started to come back to life over the past month following the traditionally quiet summer vacation."
Rapaport's assessment, published in a press release today, reads, "Diamond prices softened in September as suppliers worked to liquidate old stock. Sentiment improved as trading returned to normal at the Hong Kong Jewellery & Gem Fair, with steady demand for goods at lower prices. The RapNet Diamond Index (RAPI™) for 1-carat diamonds slid 0.7% in September and 2% during the third quarter. The index is down 4.5% since January 1, and has dropped 7.4% in the past 12 months." They add, "The Rapaport Monthly Report – October 2017 notes that lower prices have presented buying opportunities for jewelers at a time when they require inventory for the holiday season. Manufacturers’ profit margins remain squeezed, as Alrosa and De Beers have held rough prices steady while polished demand has been sluggish. Rough prices on the dealer market and at auctions were down in September as trading slowed ahead of the October 19 Diwali festival. Indian suppliers have enough inventory to maintain their operations until Diwali, when factories typically close for two to three weeks.
"The rise in inventory levels and the occurrence of Diwali means rough trading is expected to remain quiet through October and November ... Dealers are now focused on filling US holiday orders. Jewelers require less stock than before as they adjust to a changing retail environment. Still, expectations are rising for the holiday season, as jewelry retail sales in both the US and China are showing signs of improvement. A strong season should translate to stronger diamond demand in the first quarter of 2018, providing much-needed support for polished prices."