Mumbai July Market Report: Mumbai Polished Diamond Prices Have Begun Correcting
July 31, 12
(IDEX Online News) – Polished diamond prices have begun correcting in Mumbai. From the smallest to the carat-plus sizes, prices for the VS-and-better clarities had come down by up to 15 percent by mid July. The prices of lower clarities too had softened, though not by as much. Even at reduced prices, movement of all clarities and sizes had slowed down significantly.
There has been strong consumer resistance to higher polished prices all over the world for some time now. An uncertain global economic outlook, with fears of entire European countries failing financially and an uncertain US economic recovery fuelling it, has been instrumental in slowing consumer spending.
In India, a monsoon that has so far dropped 25 percent less rain than normal, has also raised fears of poor agricultural output accompanied by higher food prices. This means that the growth in the country’s diamond consumption, which has been fuelled by strong rural demand, is likely to flag and even fade away.
Business sentiment was very low and even the upcoming India International Jewellery Show (IIJS), the country’s single biggest gem and jewelry trade show, had generated no lift in demand in the polished diamond market.
MUMBAI DIAMOND TRADING IN JULY
| Size in Carat (Sieve) | Comments | Forward Call |
| -0.01 (-2 ) | Fair demand for SI2-I1 goods. | Overall demand & prices will remain low. |
| -0.02 (+2-6.5) | Good demand for white SI2-I2 goods. Fair demand for VS-SI/I-L col. | Overall demand & prices will remain soft. Demand & Prices for VVS-VS will be very soft. |
| 0.03-0.07 (+6.5-11) | Good demand for SI2-I1 whites. Fair demand for VS-SI/I-K col. | Overall demand & prices will remain soft. Demand & Prices for VVS-VS will be very soft. |
| 0.08-0.14 (+11-14) | Good demand for SI & piqué goods. | Overall demand will be low. Prices will be under pressure. |
| 0.15-0.17 (+14-15.5) | Good demand for SI & piqué goods. | Overall demand will be low. Prices will be under pressure. |
| 0.18-0.22 (1/5) | Fair demand for SI goods. | Overall demand & prices will remain soft. |
| 0.23-0.29 (1/4) | Fair demand for SI goods. | Overall demand & prices will remain soft. |
| 0.30 (1/3) | Good demand for VS-SI goods. Fair demand for piqué goods. | Demand for SI goods will remain stable. Prices will remain under pressure. |
| 0.40 (3/8) | Fair demand for VS-SI goods. | Demand for SI goods will remain stable. Prices will remain under pressure. |
| 0.50 (1/2) | Good demand for VS-SI/K+ goods. Fair demand for I1-I2/I+ goods. | Demand for SI goods will remain stable. Prices will remain under pressure. |
| 0.75 (3/4) | Good demand for +0.90 cts. VS-SI/F-J col. Fair demand for I1-I2/I+ goods. | Demand for SI & piqué goods will remain stable. Prices will remain under pressure. |
| 1.00 (4/4) | Good demand for SI/K+ goods. Fair demand for I1-I2 goods. | Overall demand will remain stable. Demand & prices for VVS/VS goods will remain soft. |
| +3.00 | Fair demand for SI-I1/G-K col. | Overall demand & prices will remain soft. |