Trend of Imports and Exports in Diamond Industry

Topics: Diamond, International trade, Diamond cutting Pages: 2 (461 words) Published: February 17, 2012
Trend Of Imports/Exports in Diamond Industry

After bouncing back in 2010, the global diamond market appears to have lost its footing in recent months. India is among the largest polished diamond manufacturing and trade centres in the world. Consequently, India's diamond exports have lost steam in past four months after recording strong growth at the start of the year, going by export-import data published monthly by the Gems and Jewellery Export Promotion Council (GJEPC), . Bright start…

Polished and rough diamond prices suffered severe blows during the global economic slowdown, with average prices of polished diamonds declining 8 per cent in 2009 alone. As economies recovered and demand revived, 2010 saw polished diamond prices increasing over 10 per cent. This positive environment continued into 2011; demand for high-value diamonds, strong sales in the US and healthy demand from the Eastern markets of India and China has been buoying diamond trade. Between January to March '11, India's diamond exports (in value terms) grew at a faster pace when compared to the year ago period. The month of March alone saw exports rising 57 per cent. Diamond imports too kept pace, rising 61 per cent in the March '11 quarter to feed growing domestic and global demand. …lacklustre end

Economic uncertainty proved to be the undoing of global demand thereafter. The uncomfortable rise in polished diamond prices also hurt demand. For instance, average prices for 1-carat polished diamonds are still higher by 45 per cent since January ‘11, according to the Rapaport's RapNet Diamond Index.Liquidity issues in diamond cutting centres and a falling consumer and investor confidence were other cautionary forces prompting diamond dealers to wait for stability. India's exports of diamonds began to slow from June '11, falling 2 per cent in value terms. July exports then declined 13 per cent. The slightly better September '11 exports, however, helped contain the quarter decline to 2 per...
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