As diamond centers across the globe enter the summer slowdown, the market was characterized by limited activity and steady-to-declining demand. De Beers and ALROSA released their half year figures showing rising rough diamond prices and changes in production.
That prices of materials fluctuate is no surprise to anyone or news, for that matter. Every material, especially a commodity, is affected by market forces of many types and sources, which jointly impact prices. Diamonds are no exception; they are affected by the same and similar forces.
In March this year, we looked at the one item that posted the greatest price appreciation in the first quarter of the year, thirds (0.30-0.39-carats). With the price fluctuations of polished diamonds in recent months, it is worth examining what happened to this item in the second quarter of the year.
Prices of polished diamonds were mixed in June, reflecting a combination of clashing trends. On the one hand, there was good demand for many diamond categories since the JCK Las Vegas trade show, shortages, and rising rough diamond prices. On the other hand, quite a few diamond categories were in lower demand, and traders in the diamond trading centers are already in “summer mode”, seeking to decrease inventories and close as many transactions as possible before the summer vacations.
The market in June was characterized by more changes in demand than usual. There was an increase in the number of categories in rising demand, while the American market saw a sharp drop in demand for smaller goods. The reasons to this market activity include the results of the Las Vegas trade show, the small trade show in Hong Kong, seasonal changes, and even preparations for the upcoming summer vacations in the diamond centers.