65th Day Of Lockdown

Maharashtra56948179181897 Tamil Nadu185459909136 Delhi152577264303 Gujarat152057549938 Rajasthan79474566178 Madhya Pradesh72613927313 Uttar Pradesh69913991182 West Bengal41921578289 Andhra Pradesh3245213359 Bihar300680014 Karnataka249379347 Punjab2106191840 Telangana2098132163 Jammu and Kashmir192185426 Odisha16608877 Haryana138183818 Kerala10885558 Assam832884 Uttarakhand493794 Jharkhand4621914 Chandigarh3641894 Chhatisgarh364830 Tripura2421650 Himachal Pradesh223634 Goa68370 Puducherry49170 Meghalaya20121 Nagaland1800 Manipur540 Arunachal Pradesh210 Mizoram110 Sikkim100
Business Market 08 Apr 2020 Diamond prices slide ...

Diamond prices slides in March as COVID-19 spreads

Published Apr 8, 2020, 12:09 pm IST
Updated Apr 8, 2020, 12:09 pm IST
The RapNet Diamond Index for one-carat diamonds dropped 6.8 percent during the month and 8.7 percent in the first quarter
Representative Image (AP Photo)
 Representative Image (AP Photo)

Mumbai: Diamond prices fell in March as the spreading coronavirus led to a dramatic decline in the global economy. Diamond markets are under pressure and facing a severe liquidity crisis as jewelry retail, diamond manufacturing, and trading shut down.

The RapNet Diamond Index (RAPI) for one-carat diamonds dropped 6.8 percent during the month and 8.7 percent in the first quarter.


Prices slumped amid slowing demand and increasing supply. Manufacturers bought large volumes of rough between December and February, anticipating strong inventory replacement after a good US holiday season.

De Beers' rough sales exceeded USD 1.3 billion in those three months preceding the pandemic, while Alrosa's reached USD 1.1 billion. De Beers canceled its March sight, and Alrosa allowed customers to defer their full allocations in early April.

Rough prices are expected to decline when sales resume. Prices at March rough auctions slid from 15 percent to 25 percent.

Meanwhile, production at the major mining companies has continued, adding to the inflated inventory they held at the beginning of the year.

Polished demand weakened as the coronavirus intensified. Polished exports from India fell 41 percent year on year in February. Shipments from Belgium dropped 38 percent and Israel's plummeted by 73 percent.

Inventory rose among diamond manufacturers and dealers, with new supply becoming available while demand stayed frozen.

It is unclear how long the pandemic will continue and the full extent to which it will impact the global economy. The industry must emphasize online trading and improve its e-commerce jewelry platforms in this environment. It must also prepare strong marketing campaigns for when demand recovers.

Following this period of quarantine and isolation, people will crave emotional connections more than ever, providing the industry an opportunity to strengthen the desirability and value of diamonds.