IDEX Polished Price Index Declines Steadily in June

(IDEX Online) - The IDEX Polished Price Index continued its gradual decline through June, down by 1.18 per cent at the close of the month. The near-straight line slide was somewhat steeper than May, when it fell by 0.69 per cent. In April it declined by more than 2.1 per cent. Before that, January and February showed sharp increases, down by 5.67 per cent and 4.14 per cent respectively.

A longer-term graph below shows the Index dropping significantly since it peaked in March. Its average value through June was 150.01, down from 151.28 in May, and 153.30 in April. The Index had been gradually declining since mid-2018 to a low point in April 2020, when the first lockdowns hit. The overall trend since then had been upwards.

Month-to-month diamond prices were down 0.8 per cent in June, indicating a slowdown in the slowdown. They fell 1.3 per cent in May and 2.2 per cent fall in April, which was the biggest monthly drop for at least four years. Prices had been increasing at record levels since the start of 2022, with a 6.2 per cent peak in February. 

Year-to-year polished diamond prices showed slower growth for a third consecutive month in June, at 17.5 per cent. They increased 21.1 per cent in May and 24.3 per cent in April, down from a peak of 27.9 per cent in March. The overall trend had been upwards since the depths of the pandemic in April 2020, albeit with a dip last September and October.

Polished month-on-month prices for all key sizes shown below, except for 3.0-cts, fell during June.  But the price drops were less than May, and May's were, in turn, less than April. Worst hit in June were 0.5-cts goods, down by 1.5 per cent. All other goods saw prices down by 0.6 per cent to 0.9 per cent, with the exception of 3.0-cts, which rose marginally, up 0.1 per cent.

The overall slowdown is reflected in the year-on-year diamond prices for June below. Prices for all sizes shown are up, but across the board they are a little down on May's year-on-year performances. 0.5-cts goods were hardest hit, up just 1.6 per cent on last month. By comparison the year-on-year figure for May was +6.5 per cent. Goods from 1.5-cts to 3.0-cts saw increases of 21 to 26 per cent in June.

Prices for all sizes shown continued their decline in June. They peaked in March after many months of significant increases but fell sharply in April and have carried on falling ever since.

Assessment: The IDEX Polished Price Index, the best overall indicator of the state of the industry, declined gradually throughout June, reflecting a slow but stable mood in the market. Prices drops were more marked among 0.5-cts. The diamond industry is still plagued by war in Ukraine, sanctions on Russia, US inflation - together with desperate shortages of rough in India and Covid lockdowns in China.