2 weeks Ago By Yagnesh Bharat Mehta
Surat: For the third consecutive month, growth in the export of cut and polished diamonds (CPD) was observed, a positive sign for the diamond cutting and polishing industry of Diamond City, which is reeling from adverse global factors. A drop in demand from the US and China, war and conflict in various parts of the world, sanctions against Russia-mined diamonds by G7 countries and the rise of lab-grown diamonds have put the natural diamond industry under pressure. However, natural diamonds are back on shopping lists in the US, while there are positive signals from the Chinese market too.
Buyers showed interest in diamonds at the recent Hong Kong International Jewellery Show . Hong Kong is the entry point for natural diamonds to China. After demand improved in Oct 2024, exports saw a 40% drop in Nov compared to the previous year.
Exports of cut and polished diamonds (CPD) dropped to $666 million in November 2024 from $1.1 billion in Nov 2023. The drop was even sharper when compared to exports of $1.
4 billion in Oct 2024. Exports in the following months have shown improvement. In Dec 2024, exports grew to $773 million, in Jan 2025 to $1.
01 billion and $1.3 billion in Feb 2025. "Prices have stabilized and there is slight improvement in demand.
It is a positive sign. The cutting and polishing industry is taking mature decisions in the current market scenario," said Lalji Patel, chairman, Dharmanandan Diamond. Suggesting caution in the market, Nagji Sakariya, chairman of HVK Diamonds, said, "This is a time that the cutting and polishing industry in the city will have to behave responsibly.
Well-studied decisions will ensure that the industry continues along the path of recovery." Industry leaders point to situations observed in the past when a rush in buying of roughs raised prices and manufacturing of finished products that was greater than demand put the brakes on growth..
