IndexBox has just released a new report: “World – Non-Industrial Diamonds – Market Analysis, Forecast, Size, Trends and Outlook”. Here is a summary of the main findings of the report.
Diamond prices in the United States continue to rise due to demand which remains strong while the supply of products is limited. Jewelry sales in the United States remain strong, but global diamond mining and cutting remains low from pre-pandemic levels, mainly due to the problematic epidemiological situation in India. The return to work in Indian processing factories should make it possible to increase the supply on the world diamond market and limit the rise in product prices. The upturn in US tourism activity could lead to lower demand for jewelry and curb price growth.
Trends and key information
According to Fairfield County Diamonds, diamond prices continue to rise. In September 2021, they increased by an average of 0.9% compared to August 2021. The average price per carat for all diamonds was $ 11,139.53, compared to $ 11,039.49 the previous month.
The increase in diamond prices is due to strong demand for jewelry in the United States and China, facing limited supply as diamond mining and cutting remains low. In the first quarter, global production of rough diamonds fell 22% to 24 million carats due to the suspension of the Canadian Ekati diamond mine, the closure of the Australian Argyle mine and the decline in activity of other large mining companies.
US demand for jewelry remains strong this year. According to a report from Mastercard’s “Spending Pulse”, jewelry sales in the United States in July 2021 were 82.6% higher than the same period in 2020 and 54.2% higher than in July 2019.
The positive financial gains for global gemstone producers confirm the strong demand for diamonds. Rough diamond sales by the world’s leading supplier to the jewelry industry, De Beers Group, amounted to $ 3.5 billion in 2021 and exceeded sales in 2020 ($ 2.8 billion). Russian diamond producer Alrosa’s rough diamond sales in the first half of 2021 were 15.5 million carats, 65% more than last year and 47% more than in the first quarter of 2019.
Along with the increase in the incidence of Covid-19, India introduced quarantine restrictions, which led to a drop in factory use to 50-70%, an outflow of migrant workers and a decrease in volume of diamond cutting and polishing operations. . As the incidence rate has declined since mid-2021, there has been a return to operations and an increase in diamond exports from India. According to the Gem & Jewelry Export Promotion Council (GJEPC), total gross diamond exports in July 2021 were $ 2.26 billion, an increase of 146% from the previous year.
The resumption of large supplies of cut diamonds from India should help limit the rise in product prices. An additional factor in lowering prices in the medium term is the gradual recovery of tourism activity, which will contribute to the shift of the population’s expenditure from the jewelry sector to tourism and the entertainment industry.
Production of non-industrial diamonds
In 2020, approx. 74 million carats of non-industrial diamonds were produced worldwide, down -10.6% from the previous year.
The countries with the highest volumes of non-industrial diamond production in 2020 were Russia (24 million carats), Canada (17 million carats) and Botswana (13 million carats), with a combined share of 65 % of world production. Angola, South Africa, Congo and Namibia lagged somewhat, together accounting for an additional 35%.
In 2020, the most notable growth rate in terms of non-industrial diamond production among the major producing countries was achieved by Congo, while the production of non-industrial diamonds for other world leaders saw a drop in figures of production.
The world’s largest importers of non-industrial diamonds
In terms of value, imports of non-industrial diamonds increased from $ 108.2 billion in 2019 to $ 67.9 billion (IndexBox estimates) in 2020.
China ($ 5.9 billion) is the largest market for non-industrial diamonds imported into the world, accounting for 8.8% of world imports. The second place in the ranking was occupied by Thailand (1.3 billion dollars), with a 1.9% share of world imports.
In 2020, the value of Chinese imports fell -24.3% year-on-year.
The world’s largest non-industrial diamond exporters
In terms of value, Belgium ($ 8.2 billion) remains the largest supplier of non-industrial diamonds in the world, accounting for 13% of world exports. The second place in the ranking was occupied by China (1.1 billion dollars), with a share of 1.8% of world exports.
In 2020, the average annual growth rate in value in Belgium was -29.5%. In the other countries, the average annual rates were as follows: China (-34.3% per year) and Thailand (-33.6% per year).
Source: IndexBox platform