JNA Sep/ Oct 2021

SPECIAL FEATURES 14 | JNA Sep/Oct 2021 KGK Group Vice Chairman Sanjay Kothari is confident China’s diamond market will remain stable moving forward. “The strong rebound since the beginning of 2021 indicates that the economic foundation and fundamental factors underpinning the development of China’s diamond market remain intact, thus validating the steady growth of China’s diamond imports,” he said. Business has also improved this year for diamond wholesaler and SDE member Huabi (HB) Diamond. Wholesale orders in the first six months doubled over the same period in 2020 but are slightly lower than 2018 and 2019 levels year on year, said company president Lydia Geng. “The bigger retailers are gravitating towards bespoke jewellery orders to reduce their own inventories,” she revealed. “Wholesale demand for round diamonds above 0.30 carat has increased significantly, but sales for stones below 0.30 carat have gone down. Round diamonds of 1.50 to 2 carats are highly sought after as well as fancy shapes over 2 carats.” Apart from traditional retailers, solid demand is coming from smaller designer studios and jewellery salons that specialise in customised orders, Geng noted. Online channels perform well, too. “In the latter part of the year, we plan to provide more goods suitable for designer pieces, especially in the 0.50-carat, 0.70-carat and 1-carat round categories, and fancy shapes over 3 carats,” she disclosed. The Indian connection According to the Gem & Jewellery Export Promotion Council (GJEPC), 14 out of 15 diamonds are polished in India. The health of China’s diamond trade is thus closely entwined with India’s supply situation. Polished diamonds from India are shipped to the mainland directly or through Hong Kong. India had been enjoying a surge in demand for polished diamonds and diamond-studded jewellery exports after the initial lockdowns last year, GJEPC said. Local demand for diamond jewellery also picked up in the second half of 2020 through to February 2021. From January to March 2021, production was in full swing to meet demand. Polished output however dropped 20 to 25 per cent in April and May as the country grappled with its second wave of Covid-19 that forced lockdowns and labour shortages. New orders were put on hold due to logistical restrictions on goods and people. Kothari said, “Chinese manufacturers were raring to resume production in March and April but due to the suspension of diamond production in India, there was a shortfall in supply.” As the second wave eases and vaccination drives gain momentum, India’s diamond production is revving up again. GJEPC expects the surge in demand for jewellery in India to continue through to March 2022, barring new outbreaks. Sanjay Shah, convener of GJEPC’s Diamond Panel, noted a sustainable increase in demand for diamond jewellery in China. Stimulus packages, pent-up demand for luxury goods and increased domestic spending in the absence of international travel have lifted retail sales since the second half of 2020, he said. The slowdown in Hong Kong also unlocked more opportunities for leading retailers to open new stores in mainland China. “We continue to see robust demand from China for the rest of 2021,” said Shah, who expects polished prices to remain firm due to shortages of rough in the global market. Source 資料來源 : Gem & Jewellery Export Promotion Council 印度寶石和珠寶出口促進委員會 India's exports of diamonds to Mainland China and Hong Kong 印度對中國內地和香港的鑽石出口 Year 年份 Mainland China 中國內地 % Growth 增長率 Hong Kong 香港 % Growth 增長率 US$ Million 百萬美元 US$ Million 百萬美元 2018 155.57 NA 9,825.27 NA 2019 94.01 -39.57 7,764.95 -20.97 2020 99.41 5.74 4,843.49 -37.62 January-March 2021 2021 年 1 月至 3 月 51.87 199.68 1,586.36 59.58 Pendant and ring with Fire Princess cushion-cut diamonds by Zbird 鑽石小鳥 Fire Princess 枕形鑽石吊墜和戒指