The Pipe – Diamond Intel: June – Modest Restocking, More Supply Discipline

Research evidence excerpt

The Pipe – Diamond Intel: June – Modest Restocking, More Supply Discipline

Idea

July 16, 2026 12:11 PM GMT

Morgan Stanley & Co. International plc+MThe Pipe – Diamond Intel | Europe Alain Gabriel, CFA

Equity Analyst

June – Modest Restocking, More Alain.Gabriel@MorganStanley.comIoannis Masvoulas, CFA +44 20 7425-8959

Ioannis.Masvoulas@morganstanley.com +44 20 7425-0427

Supply Discipline Ferdinand Huber

Research Associate

Ferdinand.Huber@morganstanley.com +44 20 7677-2702

Midstream inventories showed modest restocking in June, Adahna Ekoku

supported by resilient end-market demand. Major rough EquityAdahna.Ekoku@morganstanley.comAnalyst +44 20 7425-0578

producers reinforce supply discipline through production cuts,

which may help to rebalance the natural diamond market over Exhibit 1 : India polished diamond export

time. LGD saw modest market share gains amid larger volumes were at the bottom of the 5-year

restocking. range in June

3,000 $mn India Polished Diamond Exports Value (Monthly)

Midstream: slight MoM restocking. According to the latest Indian trade data, 2,500

rough‑diamond import volumes fell -8% YoY and rose 3% MoM, while values fell - 2,000

27% YoY and rose 13% MoM. Polished‑diamond export volumes rose 19% YoY and 1,500

fell -2% MoM, while export values increased by 9% YoY and fell -13% MoM, pointing 1,000

to MoM restocking across the midstream. Against this backdrop, Rapaport reports a 500

relatively steady month of June with stable prices after India's diamond 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

manufacturing industry has been facing pressure from geopolitical disruption, rising 5-Yr Range 5-Yr Average 2026 2025

logistics costs and weak demand year-to-date. Source: GJEPC, Morgan Stanley Research. Note: March-August 2020 data