MUMBAI: In a sign of relief for the gems and jewellery sector, prices of certified large polished diamonds (0.3 carat and above) have risen 3-5% from a year ago, while those of mid level stones are up 1-2% yoy , as per a trade official, beating expectations factored in by industry constituents.
The reason is the drying up of the pipeline as Indian manufacturers voluntarily reduced imports of rough diamonds and drew down on polished inventory, as requested by trade body Gem & Jewellery Export Promotion Council (GJEPC), to navigate the Covid -induced global slowdown.
Rough diamond imports fell in value by 74.5% to a provisional $1.2bn during April -August 2020 from a year ago. Over the same period, exports of polished diamonds fell by 41.4% to $3.9 bn as per GJEPC, reflecting the inventory drawdown to control a price slump.
“The festive demand for diamond jewellery from the US, the world’s largest consumer with a 50% market share is expected to be strong through February,” said an official from Bharat Diamond Bourse, India’s trading hub for diamonds. “Prices of polished diamonds of 30 pointers and above are up 3-5% and those of mid sized diamonds by 1-2% yoy, beating expectations.”
India is the world’s largest manufacturer of polished diamonds, having exports worth $19 bn in FY 20.