| Date: |
12-01-2016 |
| Subject: |
Surat firms upbeat as prices of polished diamond recover in Jan |
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Surat: The new year has ushered in a positive note for the diamantaires in Surat. After facing a sharp decline in 2015, the polished diamond prices recovered in the new year giving hope to diamantaires over improved market condtions.
According to US-based Rapaport group, the certified polished diamond prices in various category rose by 0.50% to 4.7%. The increase was recorded for the first time after the polished diamond prices witnessed a continuous decline in 2015. According to Rapaport's Rapnet Price list, the polished diamond prices in various categories decreased between 5.8% and 14.5% last year.
Market sources said that the polished diamond market sentiment improved in December due to shortages supporting prices and dealers filling last-minute holiday orders.
Initial reports about US holiday season jewellery sales are positive with general retail sales up about 8% and online mobile sales witnessing an increase up to 50-60%.
However, there is still very limited dealer and retailer diamond inventory buying due to uncertainty about US post-holiday demand and the Chinese New Year.
The highest price increase was recorded in the 0.30 carat and 0.50 carat categories at 4.7% and 3.1%, respectively.
Surat is the world's largest diamond cutting and polishing centre manufacturing small size diamonds below 50 cent. However, the diamantaires will get a price benefit on their unsold inventories.
Regional chairman, Gems and Jewellery Export Promotion Council (GJEPC), Dinesh Navadia said, "The increase in polished diamond prices indicates positive industry sentiments. The consumer demand is likely to increase in the coming months. Though still there is a need by the diamond mining companies to reduce rough diamond prices by almost 15-20%."
Diamond analyst Aniruddha Lidbide said, "The diamond manufacturers in Surat are operating their factories at about 30% below capacity after they returned from the Diwali break. Since the diamantiares in Surat have full inventories of polished diamonds, rough buying is expected to remain below levels in 2016."
Source : timesofindia.indiatimes.com
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