Diamond index falls

The overall diamond index opened 0.7% lower on Monday, as some traders sought to reduce inventory in certain ranges of polished. Thirty pointers, or 0.3 carats, were the main drag on the index, based on relatively high trading volumes accumulated over the past week. Fine qualities 0.3 carats, fell 4.1%, while Commercial ranges dropped 7.7%. Mixed 0.3 carats opened 6.8% lower compared to the previous week.

Commercial 0.5 carats also weakened, touching their lowest level for the year to date. The index now stands at 124.9 points, 5.8% above the level of this time last year, but down 0.4% since January. �Overall, 30 points (0.3 carats) and 50 points (0.5 carats) are still under pressure, some players are selling cheaper to reduce inventory,� said one trader.

He added: �Manufacturers are working on such low margins, so I really think we have reached a bottom.� On the bright side, Fine half carats (0.5) and mixed one carats performed well, adding 3.6% and 3.5% respectively.