The month of May is the time for the annual summer holiday in the diamond cutting and polishing industry. Workers had to spend more time at the factories to work over time this month as the factories and units were to be closed for almost a month. Summer holidays that were to begin by 20th May saw many workers spend extra hours at the units, eager to make that extra money to take home to their families. Rough shortage, the bane of the diamond industry, has affected the industry adversely, wiping the smile from the average diamantaire. Large factories and manufacturing facilities, that were able to absorb the high cost of rough, were in production full throttle to cope with their export commitments. But it is the small units that have had to bear the brunt of rough shortages, high price of roughs, etc. Many small units shut shop earlier than usual; and are expected to reopen much later than the normal 25-day shut down.
Polished goods:
Export
The polished market saw a fairly good activity with good export demand from US, Japan, UAE was mood booster for the Indian diamantaire. There has been an indication of increase in polished demand from US, which augurs well for the diamond industry. Europe is still is a damper though, but hope persists.
Domestic
The domestic sector has matured over the years and is generating good demand for good quality and bigger stones in all shapes. Polished goods of all sizes and quality are still in very good demand in the domestic market resulting in shortage of goods. It is very obvious that the demand for polished diamond is majorly supported by the increasing demand for jewellery in the domestic market
The Indian market is showing signs of stabilising in terms of price as Price correction are taking effect. Prices have picked up and though some buyers are still claiming that the asking price is high, by and large there is sign of the market becoming stronger by the day.
Diamond Jewellery
Export
Diamond jewellery has been doing pretty well too with increased demand from the largest buyer of India-made jewellery. Good demand from other overseas markets, where Indian populations is substantial like the Gulf countries, had jewellery manufacturers in frenzy.
Domestic
Diamond jewellery demand in the booming India domestic market was much more than usual as the Akshaya Trithiya festival fell this Month. The Indian domestic sector, like in the past, has been growing, with demand for finished jewellery showing a huge appetite. The Domestic market will remain the diamond industry’s sustenance for a long time to come.
Rough
Shortage of rough was the main hurdle faced by the diamond cutting and polishing centres in India. Prices, at times, went through the roof.
Roundup
Despite shortages of rough, the diamond and diamond jewellery sectors are doing fairly well.
Not satisfied with the growing demand from overseas as well as domestic markets for both loose diamonds as well as finished jewellery, the Gem & Jewellery Export Promotion Council has been drawing up many initiatives. The latest one is the Indo-Australian Jewellery Conclave in Sydney, Australia which is meant to bring jewellery manufacturers of India and some top wholesale/Retailers from Australia together to explore business possibilities. The Vegas Show has also attracted a huge contingent of diamond and Jewellery manufacturers from India to participate, given that the US market is showing ample signs of regaining its earlier position.
During the month of May 2013, the supply and demand situation was as follows:
POLISHED
Rounds
0.005-0.15 cts, F-J / SI+, good demand, selling very well; 1/5, H-J / VS, good demand.
1/4-3/8, moving very well , v. good demand , shortage of goods reported.
1/4-3/4, D-J / SI+, selling well ; moving fast.
1/2-3/4, white / pique, sold well, good movement.
0.80-0.90 cts, moving well ; F-J / VVS goods / shortage of good reported.
1.00-3.00 cts, D-K / SI to pique, moving very well , very good demand, shortage of goods in market.
1.00-3.00 cts, H-J / SI1+ very strong demand for good makes.
4.00+ cts, H-M / VS+ fair movement.
Fancy Cuts
Emeralds and Stabbes (wide baguettes), 0.25-1.00 cts, good demand D-J / VS+, selling well; shortage of goods.
Marquises 0.25-5.00 cts, F-J / VS+, selling well, good demand.
Princesses, Pears and Emeralds, 2.00-5.00 cts, good demand for H-K / VS, selling well.
ROUGH
Makeables: high demand; shortage of goods.
1-5 point: very good demand for makeables, good demand for OW TTLB & TTLC.
6-20 point: good demand for crystals/makeables.
Good demand: fancy shapes.
21-50 point: fancy shapes are in good demand.
0.51-1.00 carat: very good demand for makeables; crystals.
1.01-2.00 carat: high demand for rounds, crystals, clivage, all fancy shapes.
2.01-3.00 carat: high demand / shortage of goods.
5.00 carat+: good demand for $1,000+ makeables, crystals & all fancy shapes.
Mixed Lot: good demand.
Aruna Gaitonde for Rough&Polished, Mumbai
