The 1-carat diamond price index fell 1.3% month-on-month and 8.9% year-on-year to 4,094 points in January, according to data from industry agency Rapaport, which calculates the International Diamond Price Index.
However, the decline was more moderate than before: in December, the index fell 2.3% month-on-month and 10% year-on-year.
Buyers remained cautious due to price uncertainty, as well as the impact of tariffs and geopolitical tensions, but sentiment has improved following the US-India trade deal.
The 0.3-carat polished diamond price index fell 1.3% in January and is 21% lower year-on-year. The 0.5 carat polished diamond price index fell 1.2%, down 26.5% year-on-year. Meanwhile, the 3 carat polished diamond price index fell 1.6% in January and 1% year-on-year.
Indian market falls on rising gold prices while China remains weak. US tariffs are restricting access to the key retail market, although an agreement reached between India and the US will reduce tariffs from 50% to 18% and potentially exempt Indian stones from duties entirely, the agency noted. However, purchasing power has been reduced amid a sharp rise in gold and silver prices.
“Demand for diamonds remains low due to synthetic diamonds, China's slowing economic growth and social changes such as declining marriage rates. It will take time for sales to recover,“ the report said.