India is set to lift a self-imposed ban on rough diamond imports on 15 December, as diamond industry leaders cite improved market conditions. The decision, taken at a meeting on Tuesday, comes after a surge in sales during the festive season and a reduction in manufacturers’ inventories, which put the sector in a more favourable position when the two-month suspension began.
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), stressed the need for caution in managing the entry of rough diamonds into the supply chain, and the GJEPC plans to encourage miners and manufacturers to exercise caution.
Originally called for in late September and implemented on 15 October, the voluntary pause was aimed at assessing and mitigating the challenges facing the diamond industry, with a review scheduled for the first week of December. Despite the non-mandatory nature of the suspension, some companies continued to import rough diamonds, resulting in a 9% year-on-year increase in India’s rough diamond imports to $1.02 billion in October.
Polished prices stabilised in the previous month, with the RapNet Diamond Index (RAPI™) for 1 carat stones up 0.8%, but still down 20.7% for the year to date. Gina Drosos, CEO of Signet Jewelers, noted that retail price pressures are easing as the oversupply of natural diamonds diminishes.
Meanwhile, the United States has begun to impose sanctions on those who violate the price cap. Last week, Washington imposed additional sanctions on three companies and three oil tankers as it seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.
As for immobilised Russian assets, the European Commission is expected to propose next week a way to capture the windfall from interest earned on frozen assets. Coordination with the G7 is essential, however, as the assets are spread across several currencies, although most are held by the Belgian clearing house Euroclear.
