Rough trading slows down in third quarter
Demand for rough diamonds from India falls ahead of Diwali holiday break
Rough-diamond demand slowed in September, with the manufacturing sector squeezed between steady rough diamond prices and lower prices for polished diamonds, according to Rapaport Monthly Report. "Rough [diamond] trading slowed in the third quarter, following a bullish first half. Sentiment in the manufacturing sector was relatively weak, as profit margins have been squeezed between lower polished prices and relatively firm rough prices at De Beers and Alrosa sales," the report said. Demand for rough diamonds from India, the largest cutting and polishing centre for diamonds, particularly small stones, had reduced in September ahead of the Diwali holiday period in October as factories prepared to slow production. Indian diamond factories had enough stock after De Beers and Russian producer Alrosa sold $762m worth of rough diamonds in August. The factories also bought rough diamonds at auctions by other companies in September at lower prices. Rapaport said De Beers sold $505m worth of ...