Mumbai Polished Prices Stabilize Though Downward Pressure Persists

(IDEX Online News) – Polished diamond prices seemed more stable in the Mumbai market, improving business sentiment and bringing some measure of optimism.

Polished prices had dropped by as much as 20 percent in some categories over July and August, depressing business sentiment and bringing a great deal of uncertainty.

Despite the stabilization of prices however, the downward pressure persists and dealers expect a further drop of some 3 or 4 percent in the immediate short term. However, this further drop is expected to take place at a more sedate pace.

The India International Jewellery Show (IIJS), which ran over the last week of August, steadied prices and brightened the outlook. The lowering of rough prices by De Beers at its September Sight further steadied sentiment and slowed the fall in prices.

Polished prices in Mumbai for IF-VVS goods are currently some 20 percent lower than what they were at the beginning of August. Prices for VS-SI1 goods are down between 10- and 12 percent over the same period, while the

SI2-and-below clarities have only dipped between 2- and 3 percent over this time.

There is a great deal of expectancy as dealers wait for the Hong Kong Jewellery Show to kick off.