Staff Writer
Diamond prices continued to recover in August, with smaller stones recording the strongest gains and 1-carat diamonds registering their first monthly increase in 15 months, according to the Rapaport Trade Diamond Index (RAPI).
The RAPI for 1-carat round diamonds rose 0.5% in August, following a period of flat or declining prices that began in May 2025.
Smaller stones recorded stronger increases, with the index for 0.30-carat diamonds rising 2% and 0.50-carat diamonds gaining 2.5%. By contrast, the 3-carat index declined 0.4% after remaining broadly stable for about 18 months.
Rapaport said the categories that experienced the sharpest declines during 2025 continued to rebound in August as reduced production by miners and manufacturers helped bring supply and demand into better balance.
Trading activity also increased following the traditional summer slowdown, while round diamonds generally performed better than fancy-shaped stones.
Diamonds weighing between 0.30 and 0.69 carats led the recovery, supported by lower production and declining inventories.
The 1- to 1.49-carat category also showed signs of stabilisation as inventories fell and reports indicated that some consumers were becoming less interested in laboratory-grown diamonds.
Larger diamonds of 1.50 carats and above continued to record relatively firm demand, particularly in larger sizes and commercial-quality stones popular in the US market.
The recovery was also reflected in trading activity across major diamond centres. Indian manufacturers resumed shipments to the US after the summer slowdown, while greater clarity around a 10% US tariff on Indian goods contributed to improved trading conditions.
India’s export and domestic markets also strengthened, with increased business reported at the India International Jewellery show in Mumbai.
Trading in Antwerp and Israel remained seasonally subdued, while Chinese demand was weak ahead of the September Jewellery and Gem World Hong Kong fair.
Despite improving prices in some categories, major diamond producers continued to report weaker sales.
Alrosa’s revenue declined 36% year on year to 74.16 billion Russian Rubles, equivalent to about US$901.6 million, in the first half of the year. The Russian diamond producer recorded a loss of 10.67 billion roubles, or approximately US$129.7 million.
De Beers reported a 19% year-on-year decline in revenue to US$1.58 billion during the same period. However, lower expenses and more stable diamond prices helped reduce the company’s losses.
Rapaport said the diamond industry is now focused on the upcoming holiday selling season. While supplies are generally considered sufficient, shortages remain in some sought-after categories.
