It’s back to the grind for the Indian diamond sector after the long annual Diwali vacation. The cutting and polishing sectors resumed production in full earnest albeit with a slow pick up. Most of the diamond units have opened in the diamond hub of Varachha, Katargam and Mahidharpura in Gujarat as in other parts of India. The larger corporatized factories in Surat saw fewer absentees as almost all workers have reported for work. But, the medium and small units are working with fewer workers as around 60 per cent of diamond workers are yet to return from their hometowns in Saurashtra. The factories have opened, but there is thin presence of diamond workers, as most of them are visiting their families. Surat will see routine operations in the diamond factories after the first week of December, when the workers would start returning. Though most of the manufacturers have resumed operations, the overall manufacturing remains below capacity, which is expected to work in full capacity when industry workers return. The rough situation too is comparatively better, thanks to the last two DTC Sights that have brought some cheer to the cutting centres.
The Indian diamond industry is seriously concerned of synthetic lab-grown diamonds in circulation in the local natural diamond markets. The Gem & Jewellery Export Promotion Council (GJEPC) of India and other trade organisations are currently taking all steps to find solutions to the problems. While the Indian diamond industry is not averse to the synthetic diamond sector finding a market too, it is not ready to tolerate the misuse of synthetics to spoil the natural diamond industry. According to Dinesh Navadia, President, Surat Diamond Association, it is unfortunate that due to some unscrupulous elements the entire industry's reputation is at stake; and that nothing can be done except spread awareness among diamantaires to check each and every parcel before buying. Not surprising then if overseas buyers, especially who are interested in purchasing small-sized goods, have become cautious and disturbed after the news of synthetic lab-grown diamonds were detected from a few parcels in Mumbai.
Trading activity, after the Diwali vacation, was rather upbeat in the Mumbai diamond market. The polished market saw improvement in buyers demand during the last but one week of November. Indian diamantaires are also quite optimistic about the US Christmas sales season. Due to the three-week suspension of manufacturing activity in the cutting and polishing sectors, there are reports of shortages of polished goods in the market. The goods in inventory are the ones mainly being traded in the market right now. With price reduction by De Beers in the last 2 Sights, rough trading too has improved as dealers are seeing better value in the secondary market.
Reports of the revived US market ‘stocking up’ for the Christmas season (which is expected to be good), is a boost to the Indian industry. Following this, will be the Valentine Day sales for which the US market will replenish again. This is keeping the Indian jewellery manufacturers busy. Consumer spending in the US is also reported to be growing. This augurs well for the Indians as the US is still the biggest jewellery market for Indian manufacturers. Indian companies are now busy focusing on filling export order commitments in time for the Christmas season and later festive seasons.
The Indian domestic market is gung ho, despite gold curbs. The local jewellery retailers are pushing promotions to increase sales during the ongoing wedding season.... new collections, schemes, discounts and what have you. Demand for diamond jewellery is on the increase locally, which again has the diamond industry in good cheer. In recent years, the domestic market has been the sustenance for the Indian diamond industry, irrespective of whatever shape the overseas demand takes.
During the Month of November 2013 (the market was closed for Diwali vacation for more than10 days) the demand and supply situation was as follows:-
POLISHED: Rounds
0.005-0.15 cts, F-J / SI+, good demand, selling very well
1/4-3/8, good demand, no goods in market
1/4-3/4, D-J / SI+, selling well. Shortage of goods
1/2-3/4, white / pique, selling well
0.80-0.90 cts, moving well; shortage of good in the market
1.00-3.00 cts, D-K / SI to pique, good demand, no goods in market
1.00-3.00 cts, H-J / SI1+ strong demand for good makes
4.00+ cts, H-M / VS+ good movement
Fancy Cuts
Emeralds and Stabbes (wide baguettes), selling well.
Marquises 0.25-5.00 cts, F-J / VS+, v. good demand, no goods in market
Princesses, Pears and Emeralds, 2.00-5.00 cts, good demand, shortage of goods reported
ROUGH:
Makeables: very high demand; shortage of goods.
1-5 point: very good demand: makeables. V. good demand: OW TTLB & TTLC.
6-20 point: good demand: crystals/makeables. Shortage reported
Fancies:
21-50 point: fancy shapes good demand
0.51-1.00 carat: v.good demand: makeables, crystals
1.01-2.00 carat: good demand for rounds. But shortage of goods reported.
2.01-3.00 carat: high demand, no goods in market
5.00 carat+: fair demand: $1,000+ makeables, crystals & all fancy shapes
Mixed Lot: good demand
Aruna Gaitonde, Rough&Polished, Mumbai
