Chamwe Kaira
Diamond prices fell across several categories in September as US tariffs and the ongoing sale of De Beers created uncertainty in the market, according to the RapNet Diamond Index (RAPI).
Prices dropped sharply for round polished stones under one carat, while larger diamonds showed mixed results, a trend that has persisted for months. Long fancy shapes remained popular, particularly in sizes of two carats and above.
At Hong Kong’s Jewellery & Gem World show, trading reflected the divide between small and large stones, with stronger demand for the larger, elongated diamonds. Independent jewellers in the United States reported steady retail business ahead of the holiday season, but import duties limited overseas suppliers’ access to the American market.
Diamonds remain Namibia’s top foreign exchange earner, though the government has projected subdued activity in the sector for the 2025/2026 financial year, leading to weaker contributions to state revenue.
The European Union secured a zero-tariff arrangement for all diamonds polished within its bloc, while Botswana is negotiating a similar deal. The 50% tariff on Indian goods has drawn the most concern. Debmarine Namibia confirmed that talks are underway to seek a US exemption from diamond import tariffs, warning that the levies could reduce the competitiveness of Namibian stones in the world’s largest jewellery market.
On 5 September, the White House added diamonds to a list of potential exemptions for countries with trade agreements with the United States.
Indian manufacturers have scaled back polished diamond production amid soft demand. The country’s rough diamond imports dropped to US$768.7 million in August from US$1.15 billion in July, though they are still 14% higher than the same month in 2024.
The sale of De Beers by Anglo American remains ongoing. The Botswana government has shown interest in acquiring a majority stake, while Angola has expressed interest in a minority share. Deputy Prime Minister Natangwe Ithete said Namibia must carefully evaluate the industry’s challenges—including competition from synthetic diamonds and declining demand—before considering a stake in De Beers.
De Beers has extended its sightholder contracts through June 2026 as uncertainty continues. In its 2024 production report, Anglo American, through De Beers, reported that Namibia’s diamond output dropped by 4% to 2.2 million carats due to a deliberate decision to scale back production amid weak trading conditions.
In its fourth-quarter 2024 report, Anglo said the challenging rough diamond market prompted a cut in production guidance for 2025 and 2026, with a focus on value, working capital efficiency, and cash generation.
The RapNet Diamond Index measures the average asking price, in hundreds of dollars per carat, of the 10% lowest-priced round diamonds in 25 top-quality categories (D–H, IF–VS2, GIA-graded, RapSpec-A3 and better) listed for sale on RapNet. The Rapaport Group, which operates RapNet, supports transparent and ethical diamond trading, with daily listings of about 1.5 million diamonds valued at over US$7.2 billion.
