The focus has shifted towards the United States prior to the annual show in Las Vegas, as the hype around the March Hong Kong fair subsided. Dealers to refrain from closing deals, hoping that Las Vegas will enhance its activities in the market.
Diamond index RapNet (RAPI) for 1-carat diamond decreased by 0.3% in April and 1.4% in the year.
Despite the decline in diamond market indicators, trade in rough diamonds is gaining momentum.
Diamond production has returned to almost full capacity since the major Indian factories stepped up their operations after the November break at the Diwali Festival. Runoff diamonds grow, and the number of stones on display on the site RapNet, increased by 3.5% in April and by 7.5% from 1 January.
Strong commodity markets have allowed the largest mining companies - ALROSA and De Beers - cut diamond stocks, as their total sales in the first quarter exceeded the production of 11.9 million carats. It is expected that world production of diamonds will increase by approximately 12% in 2017, as mining companies have made a commitment to produce products in line with demand.
Rapaport The monthly report for May 2017 notes that the rapid diamond market is not supported by the current level of demand for diamonds. Diamond prices strengthened by 2% - 3% from the beginning of the year, while the polished diamond prices declined. The volume of diamond imports to India grew in volume in the first quarter, while the volume of the diamond trade in India and Belgium decreased.
The continuation of these trends will put pressure on the facet sector as liquidity and profitability could be undermined. After a period of increasing profits and responsible trade in 2016. The manufacturers should proceed with caution, since the diamond market tends to slow down during the second quarter.
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