NEW YORK--(BUSINESS WIRE)--The Rapaport Melee Index (RMI™) for small diamonds was stable at 108.50 during the second quarter of 2017. Year over year the index is down 1.9% from its level of 110.64 in June 2016.
Polished diamond trading remained cautious in June as dealers returning from the JCK Las Vegas show were disappointed by the level of activity. Visitor traffic was down and buyers were less interested in sourcing their goods at trade shows. Overall, there is a continued shift toward goods at lower price points. Inventory is building up with continuous manufacturing even though polished prices softened in the first half of the year. Rough demand remains strong and profit margins tight.
It is expected that midstream profitability will continue to be challenged in the third quarter and polished trading will remain slow during the summer vacation period. Business should pick up again as we approach the fourth quarter.
“U.S. demand remained steady and the Far East witnessed a mild recovery in 2Q 2017. Miners reduced production in an effort to not oversupply the market, driving higher prices and robust trade on the rough market. While the manufacturing sector has been relatively profitable, higher rough prices combined with softening polished prices in select categories is increasing pressure on manufacturers’ margins,” said Ezi Rapaport, Director of Global Trading, Rapaport Group
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About Rapaport Auctions: Rapaport Auctions is the largest recycler of diamonds in the world, driving market liquidity and assisting suppliers to achieve fair market value for their diamonds on a consistent basis. The large quantities and wide variety of merchandise offered attract competitive bids from a broad range of international buyers. Rapaport Auctions is committed to addressing the needs of the international diamond community for enhanced liquidity while presenting unprecedented buying opportunities.