IDEX Polished Price Index: Slower Decline in August
September 02, 24
(IDEX Online) - The IDEX Polished Price Index dipped yet again during August - down 1.36 per cent - although the decline was significantly less than the previous month (3.12 per cent in July). It is, however, the first time the since the Index was launched 20 years ago that it has dropped below the 100 mark.
The ongoing downturn is due to weak retail sales in the US, China, and other key markets, together with increased competition from lab growns and a general slowdown because of summer vacations.
Overall sentiment remains cautious, with manufacturers maintaining polished production at reduced levels and working short weeks due to sluggish demand.
In addition, the threshold for G7 sanctions on Russian diamonds dropped from 1.0-cts to 0.50-cts on 1 September.
The Index remains in overall decline, dipping below the 100 mark for the first time since its inception in July 2004. It peaked in early 2022 but the trend has been downwards ever since.
Month-to-month prices were down by 1.9 per cent in August, compared to 3.1 per cent in July (by far the biggest fall of 2024). Prices have fallen every month this year except for a slight rise in January.
Year-to-year prices fell yet again during August. Throughout 2024 prices have been dropping by more or less the same amount every month, between 13 and 15 per cent. The price drop in August (13.3 per cent) was marginally less than July (13.9 per cent).
Month-to-month prices were down for all sizes shown below during August, except 4.0-cts.
But the decline for the month was slower - between 1.3 per cent and 2.9 per cent compared to 2.3 per cent to 4.5 per cent in July. There was a slight increase for 4.0-cts goods (generally more volatile) of 0.1 per cent, against a 2.3 per cent drop the previous month.
Year-to-year prices for August were broadly similar to those for the last three months, except for more pronounced drops in larger goods. 4.0-cts fell 13.5 per cent compared to 8.8 per cent in July and 5.0-cts were down 7.7 per cent compared to 5.6 per cent.
Prices for goods of all sizes shown below fell during August, except for a marginal increase in 4.0-cts goods.
