Prices of small natural diamonds continued to recover in June, with gains accelerating from the previous month as tighter inventories supported the market, according to Rapaport’s latest market report.

The Rapaport Trade Diamond Index (RAPI™) for 0.30-carat diamonds rose 4.2% in June, doubling May’s 2.1% increase. Prices for 0.50-carat diamonds increased 1.3%, up from a 0.9% gain in May. In comparison, the 1-carat RAPI declined 0.7%, while the 3-carat index edged up 0.4%, returning to positive territory after falling in May.

Rapaport said reduced inventories continued to drive the price correction in smaller goods. In the US, the strongest demand remained concentrated in 2-carat and larger round and elongated fancy-shaped diamonds in G-I colours and VS-SI clarities. Demand also improved modestly for 1- to 1.99-carat round diamonds in F-J colours and VS-SI clarities, while fancy shapes in the same size range remained firm.

On the rough side, De Beers made significant price reductions at its July sight, particularly for goods below 3-grainers (0.75 carats). Rapaport noted that the move was largely intended to align rough prices with prevailing market levels and was unlikely to have a major impact on polished prices. The July sale was also the first under De Beers’ new sightholder contract, under which the miner reduced its customer base from around 70 companies to between 45 and 50.

Global rough diamond production declined 8% to 98.8 million carats in 2025, with production value falling 3% to $9.23 billion, according to Kimberley Process data cited by Rapaport. Russia remained the world’s largest producer by value. Meanwhile, Alrosa announced a three-month suspension of operations at its Severalmaz deposits as part of its supply management strategy, while Indian manufacturers continued to maintain cautious production levels.

At the retail level, the US market remained supportive through June. In Asia, Hong Kong retailers Chow Tai Fook and Luk Fook reported steady growth in their latest fiscal year, driven by higher gold prices and stronger jewellery sales. Rapaport also noted that domestic wholesale and retail activity in India is expected to strengthen ahead of the August IIJS exhibition and the start of the wedding season in October.