The global diamond trade entered 2026 with subdued sentiment and familiar pressures, according to Rapaport. December trends underscored a clear divide in demand, with polished diamonds above 1 carat holding firm while smaller goods saw sharp price corrections. US dealers reported a steady holiday season, marked by cautious inventory management and late-stage buying, particularly for 1.20-carat and larger stones and long fancy shapes.

India’s export activity slowed under the weight of US tariffs, while domestic demand softened after a strong 2025. Concerns around lab-grown diamonds intensified following Titan’s launch of its beYon brand. China continued to show weak appetite.

Price data reflected the imbalance. The RapNet Diamond Index for 1-carat diamonds fell 2.3% in December, while 0.30-carat and 0.50-carat goods dropped 9.3% and 6.4% respectively. Larger stones remained resilient, with the 3-carat index edging up.