With the cutting and polishing centres closed for Diwali, the Indian diamond market turned almost inactive. While some offices may have resumed in Mumbai, rough as well as polished trading is almost non-existent. This is a period in a year when the whole diamond industry is considered technically closed due to the Diwali festival vacation period. In the cutting centres, businesses will remain closed until the first week of November. Rough trading has also been weak as diamantaires wait for the price outcome in the next DTC sight. While domestic demand was reported for stars and melees, overseas buyers were missing.
During the month of October and on the run-up to Diwali, rough as well as polished trading was as usual but on a subdued tone. Rough trading was considerably slow, as the factories would be shut for Diwali. Besides, traders were waiting for the next DTC sight and the price factor that would make a difference in their business.
However, there were many incidents, which had direct effect on the well-being of the diamond industry. The Antwerp Diamond Bank going in for liquidation, many lending banks insisting on extra collateral and the move by Standard Chartered Bank to lower its exposure in India did take its toll on the Indian diamond industry. It was feared that this would hurt the industry at a time when exports were down 10 percent. The industry leaders were of the opinion that the whole diamond industry is suffering because of a few fly-by-night operators.
Meanwhile, the Gem & Jewellery Export Promotion Council of India (GJEPC) rubbished the news items carried in various publications that diamantaires were offering discounts of 5%-20% to counter cash crunch in the industry. In a ‘Statement’, the GJEPC also added that the industry’s fundamentals were strong and therefore it can weather any crisis that may come by. Also, in an attempt to get more sops for the industry, a delegation under the leadership of Vipul Shah, Chairman, GJEPC submitted pre-budget proposals to the Gujarat government with a request to take up the issues and demands of the gem and jewellery industry with the Central Government. GJEPC also recommended the introduction of a turnover-based taxation system as it would help in attracting foreign diamond mining companies to trade rough diamonds in India and make it a diamond trading hub. A Special Zone was also suggested for convenient trading of rough fr om producing countries.
Export-wise, the industry is beginning to do well, going by the previous month’s provisional figures announced by the GJEPC. Cut and polished exports for the month of Sept ’14 registered US$ 2,663.66 million (3,627,000 carats), an increase of 11.19 percent as against US$ 2,395.50 million (3,322,000 carats) during Sept.’13.
When GJEPC and BDB (Bharat Diamond Bourse) joined the World Federation of Diamond Bourses (WFDB) and other major diamond industry umbrella organizations, which announced their decision to boycott the World Diamond Council Annual General Meeting in Antwerp, Belgium, the matter was widely debated. This prompted GJEPC and BDB to announce a plan to host a brainstorming session for representatives of the global diamond industry to discuss the issues that sparked the boycott; and that invitees would include the entire Board of the World Diamond Council.
As for the domestic jewellery sector, it reported to have done well with good jewellery retail sales of both poor gold as well as diamond-studded jewellery during Diwali. To safeguard the interest of the end consumer, prior to Diwali, the Bureau of Indian Standards (BIS) came up with a policy by which a customer will be able to get his gold jewellery tested at the Bureau’s local office. People in India were not aware of hallmarking and the need to test gold purity as most people make purchases on the basis of their trust with a jeweller instead of checking the hallmark quality. Also, during the month, a two-day seminar was organised by the India Bullion and Jewellers Association (IBJA), wh ere experts were of the opinion that Indian household, which has total holding of around 25,000 tonnes of gold, needs more gold refineries for monetising and attracting foreign direct investment (FDI) in the sector.
The demand/supply situation during the month of Oct. 2014 was as follows:
POLISHED
Rounds
0.005-0.15 cts, F-J / SI+, sold well
1/5, H-J / VS, good demand, moved well
1/4-3/8, selling well 1/4-3/4, D-J / SI+, less goods
1/2-3/4, white / pique, selling well, shortage of goods
0.80-0.90 cts, selling well; F-J / VVS goods, less goods in market
1.00-3.00 cts, D-K / SI to pique, selling well, good demand, less goods available
1.00-3.00 cts, H-J / SI1+ high demand
4.00+ cts, H-M / VS+ selling ok, goods available in small amounts
Fancy Cuts
Emeralds and Stabbes (wide baguettes), 0.25-1.00 cts, good demand D-J / VS+, selling well.
Marquises 0.25-5.00 cts, F-J / VS+, good demand, selling well
Princesses, Pears and Emeralds, 2.00-5.00 cts, good demand for H-K / VS, moving well, good demand
ROUGH:
There was hardly any trading in rough diamonds during the month.
Aruna Gaitonde, Rough & Polished, India
