Rough diamond imports continue to fall for fifth consecutive month

  • | Wednesday | 19th September, 2018

Decrease in rough diamond imports is due to bank squeezing finance and increase in rough diamond prices. Rough prices have continued to rise, squeezing margins in midstream diamond industry segment, specially in India.Diamond industry analyst Aniruddha Lidibide said, “Diamond mining companies have increased rough diamond prices by almost 15 to 20 per cent in the last few months. Suppliers held polished prices firm amid shortages in some categories and as high rough prices squeezed manufacturing profit margins.Rapaport Group stated that the United States and China continue to drive market demand. Surat: All is not well for diamond workers in the world’s largest diamond cutting and polishing centre in the city. However, diamond manufacturers in India are aligning their inventory with retailers’ needs, resulting in slightly lower stock levels this time than last year.

Surat: All is not well for diamond workers in the world’s largest diamond cutting and polishing centre in the city. Since April, import of rough diamonds is continuously falling raising concerns about the future of workers in the industry.According to latest data of Gems and Jewellery Export Promotion Council (GJEPC), import of rough diamonds has declined by 7 per cent to $ US 7.16 billion from $ US 7.69 billion a year earlier. In volume terms, imports fell by 9 per cent from 75.33 million carats in April-August 2017 to 66.24 million carats in the same period this year.Surat Ratnakalar Sangh (SRS) president Jaisukh Gajera told TOI, “Diamond units have reduced their capacity due to increase in rough diamond prices and non-availability of finance from banks. This has resulted in diamond workers getting very less wages and that many have lost their jobs in the past few months.”Rough diamond imports in the country has witnessed a sharp decrease for the fifth consecutive month since April 2018 with the banks tightening their noose around diamond companies due to multi-crore scam in Punjab National Bank (PNB) involving Nirav Modi and Mehul Choksi and diamond mining companies increasing prices of rough diamonds.According to import figures of GJEPC, average monthly import of rough diamonds has plummeted by almost 11 per cent compared to previous year.The rough diamond import in the month of June fell by 14 per cent at $1.5 billion compared to $1.7 billion during the same month in previous year. Similarly, rough diamond import in May fell by 17 per cent at $1.5 billion compared with $1.8 billion in the same month in previous year, followed by a decrease of 13 per cent in April at $1.5 billion compared to $1.7 billion during the same month in previous year.According to the US-based Rapaport Group, diamond market sentiment was positive in June after Las Vegas jewellery show demonstrated robust jewellery demand in the United States. Suppliers held polished prices firm amid shortages in some categories and as high rough prices squeezed manufacturing profit margins.Rapaport Group stated that the United States and China continue to drive market demand. However, diamond manufacturers in India are aligning their inventory with retailers’ needs, resulting in slightly lower stock levels this time than last year. Rough prices have continued to rise, squeezing margins in midstream diamond industry segment, specially in India.Diamond industry analyst Aniruddha Lidibide said, “Diamond mining companies have increased rough diamond prices by almost 15 to 20 per cent in the last few months. Decrease in rough diamond imports is due to bank squeezing finance and increase in rough diamond prices. Most of the big as well as small manufacturers are finding it tough to get bank finance.”

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