Demand Rotates into Smaller Stones as Polished Firms

De Beers' average realized rough price held at $110/ct in Q2, down 37% year over year. Producers are defending volume over price, so rough remains low, creating a cost cushion for manufacturers but also showing that the floor has not yet lifted.

RAPI firmed this month, up 0.63% for 1 ct goods and 2.52% for 0.50 ct goods, with the smaller size clearly leading. Polished demand is concentrating in more affordable stones as buyers trade down.

The dollar strengthened this week against the rupee, up 1.13% to ₹95.56, and against the shekel, up 1.25%, while gold added 1.04% over the month to $4,409/oz. A softer rupee raises local-currency costs for USD-priced rough, but it can support export receipts and INR-based margins, partly cushioning July's 18% YoY drop in India's polished exports.

Surat's lab-grown association is pressing members toward pricing discipline as margins tighten. With lab-grown diamond producers trying to stabilize prices, the lab-grown side is managing its own value erosion, worth watching for anyone quoting either category.

Jewellery & Gem WORLD Hong Kong opens tomorrow, Sep 14, at AsiaWorld-Expo, offering the season's first major Asian demand read heading into Q4.