China’s diamond trade plummeted during the first half of the year as strict anti-pandemic measures heavily impacted market sentiment, the Shanghai Diamond Exchange (SDE) reported.

Latest SDE data showed rough and polished diamond transactions on the platform were down 46.2 per cent year on year to US$2.06 billion from January to June 2022. Polished imports dipped 36 per cent to US$1.01 billion compared to the same period in 2021.

According to SDE, the market started showing signs of improvement by the second half of 2022, with June polished imports rising 48 per cent year on year to US$441 million. 

Lin Qiang, vice chairman of the World Federation of Diamond Bourses and SDE president, said a government-backed stimulus package is expected to spur domestic economic activity and growth in the second half of the year. 

Demand for bridal and diamond jewellery, which was adversely affected by the pandemic during the first half, is also seen to strengthen, the SDE official continued.

From 2002 to 2021, polished diamond imports through the SDE grew from US$31 million to a record US$3 billion.