Diamond exporters keen to increase shipments to Southeast Asian markets

As COVID-19 restrictions continue to be eased, India’s diamond exporters are keen to increase shipments of polished diamonds to Southeast Asian markets in Cambodia, Thailand and Vietnam. Cut and polished diamond exports registered a growth of 29.37% to Rs 15,083,33 crore in August 2021. Key commodities like cut and polished diamonds, silver jewellery, studded gold jewellery and lab grown diamonds also recorded boost in exports.

Sabyasachi Ray, executive director, Gem & Jewellery Export Promotion Council (GJEPC), told ET that the diamonds that are exported to China from India are further exported to other nations from the country. “Nearly 60-70% of the diamonds imported by China are exported and the rest 30-40% are used for domestic consumption. The Chinese economy’s slowdown is going to impact the domestic consumption of diamonds by the Chinese.”

Vipul Shah, managing director, Asian Star, said that with other Southeast Asian markets opening up, Indian diamond merchants can now export to these countries. “Moreover, there is a supply constraint of rough diamonds and the stock in the pipeline is very less. The demand for polished diamonds is very robust in the global markets.”

Also Read: PayPal in late-stage talks for acquisition of Pinterest, deal discussions confidential

According to GlobalData, global rough diamond production is expected to recover by 1.4% to reach 112.99 million carats (Mct) in 2021 after registering an estimated 19.4% decline to 111.4 Mct in 2020 due to the coronavirus pandemic. Vinneth Bajaj, Associate Project Manager, GlobalData, said production forecast period 2021-2025 is expected to grow at a compound annual growth rate (CAGR) of 2.5% to reach 124.8Mct in 2025. “During Q1 2020, China was the worst affected, however, it was also the fastest to recover after the setback from the pandemic. China became a key driver for the balanced global demand for diamonds. Elsewhere, the gradual easing of restrictions improved market conditions and reinforced demand across the global supply chain. Demand in key consuming markets, including the US and China, recovered towards the end of 2020.”