The month of June 2016 was rather quiet as far as trading was concerned in the Indian diamond industry. Polished as well as rough trading was as normal as could be as the two major shows …JCK Las Vegas Show & the Hong Kong Show … took away all the attention.
GJEPC’s India Pavilion participated at JCK Las Vegas for the 13th consecutive year with 50 leading gem and jewelry exporters from 3-6 June. The Indian manufacturers and retailers exhibited a scintillating array of exquisite, gems & jewellery – including loose diamonds, loose coloured gemstones, plain gold jewellery as well as diamond and coloured stone and studded jewellery manufactured especially for the visitors of the JCK LV show.
But, according to sources, the Las Vegas Show did not bring any extraordinary business for the Indian participants. Though buyers were expected to throng the Show, reports say that the Show was weak and traffic slower than the previous years. Exhibitors, who expected polished prices to go higher than the previous month and looked forward to make good deals at the Show, were in for a big disappointment. However, Indians still look towards US as demand from the country is steady, though the diamond and jewellery trade on the whole is affected negatively to an extent, due to it being an election year leading to a weak economy.
According to sources from the recent Hong Kong Show, polished demand is good in the market. And, the Indian businesses have learnt their lessons and are currently working with smaller inventory. Production, however, has picked up in the cutting centres during the month of June; and demand for rough is quite high. With diamond producers controlled supplies, the diamond industry in India is exercising responsible sourcing and is gradually returning back to normalcy. While De Beers sold $630 million worth of rough in May and ALROSA was able to reduce its rough inventory due to strong sales. The industry is gradually stabilizing with polished goods seeing a sense of price correction.
According to provisional data announced by the Gem & Jewellery Export promotion Council (GJEPC) of India in June, India’s cut & polished diamond exports for May 2016 amounted to $1.97 bn as against $1.74 bn in May ’15, a rise of 13.24 percent. The Indian diamond industry is slowly showing signs of revival. In volume terms too, exports amounted to 2.98 mn cts in May ‘16 in comparison to 2.59 mn cts in May ’15. Rough imports recorded an increase of 15.09 percent to $1.52 bn for May ’16 as against $1.32 bn in May ’15. In volume terms too, an increased total of 12.10 mn cts of rough was imported in May ’16 compared to 11.11 mn cts for the same month in the previous year.
When Britain exited from the European Union, it did not have any earth-shattering effect on the Indian jewellery exporters. But, according to industry players, though the United Kingdom contributes less than 10 per cent of India’s US $40 billion of annual gems and jewellery exports, a depreciating GBP would reduce the purchasing power of Britons, resulting in a proportionate decline in the purchase of gems and jewellery, which in turn will hurt India's exports. Also, in the long run, import of rough diamonds would be affected as it might decline as even a falling rupee will make dollar-denominated diamond imports costlier.
June saw another pro-industry step by the Indian government when news was out that the country was looking to be self-sufficient in terms of raw material for the G&J industry. This brought good cheer to the industry members, who are perpetually facing problems for rough diamonds and gold. Under the proposed new regulations, India is looking to open up mining of gems and precious metals to cut dependence on imports. Mines Secretary Balvinder Kumar is reported to have said that ‘changes in the national mineral exploration policy will be unveiled by this month end’. The country is set to auction about 50 blocks for diamond and gold exploration in the fiscal year, aided by the changes in the national mineral exploration policy to be unveiled by month end. The new exploration policy will cut the time needed for approvals and guarantee royalties over the life of a mine.
During the month, an historical moment occurred for the Indian industry when the Diamond Producers Association (DPA) and The Gem & Jewellery Export Promotion Council of India (GJEPC) signed an MOU to collaborate and boost diamond demand in the world and enhance the image of the diamond industry. At an event to unveil its new Category Marketing Platform, “Real is Rare”, the DPA’s Chairman Stephen Lussier and Praveenshankar Pandya, Chairman, GJEPC also pledged to collaborate to strengthen diamond industry fundamentals for the future, by stimulating consumer desire for diamonds. The GJEPC has also agreed to contribute to the DPA’s 2016 marketing investment and work hand-in-hand with the DPA leadership to explore long term collaboration opportunities, bringing the much needed ‘ confidence’ to the Indian Gem & Jewellery industry.
Meanwhile, the domestic jewellery market continued to be the sustenance to the diamond industry as demand for all category of polished stones found buyers. The preparation for the oncoming IIJS 2016 was also a reason for the high demand, as the domestic industry let no stone unturned to return to its robust self after being hit badly due to the long drawn ‘strike’, some months ago.
June being a month of monsoon in India, Platinum Guild unveiled a new collection inspired by the fluidity of water. Associated with style and timelessness, the new range of Platinum jewellery comprising of delicate neckpieces and earrings was a classic and telling collection that pays ode to the purity of water. Mumbai based luxury jewellery brand Manubhai Jewellers that is known for their tasteful designs launched a resplendent collection of Temple Jewellery, where each piece payed tribute to artistry of Indian temples. Every piece of the temple collection brings with it a unique design and is an ideal companion for every auspicious beginning. The breath-taking designs can be clubbed well with traditional as well as contemporary attire.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough&Polished
