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June 3, 2020
Industry analyst Edahn Golan recently released a report summarizing the development of the global diamond industry in the first quarter of 2020. The report pointed out that the diamond market demand has dropped significantly, and the price of finished diamonds has risen in January and February. The decline was basically balanced in March. The diamond trade in various countries was hit, and the sales volume dropped significantly or even almost to zero.
Finished diamond price
Since the end of last year (December) was the peak sales season, the actual average price of finished diamonds in January rose by 1.4% with the market, but fell by 2.9% in February, and fell slightly by 0.03% in March, basically maintaining a balance.
The reason why March was able to maintain balance was entirely due to two reasons:
1. Trading volume drops sharply
2. Everyone is worried that the price reduction will cause a snowball effect, which will cause the price to continue to drop substantially and even cause many companies to close.
The price of 0.3-carat diamonds continues to rise, rising 0.6% in January, 1.6% in February, and 1.5% in March. The price of large particles (3ct) also performed well in March.
Market demand for finished diamonds
The overall sales of finished diamonds did not appear abnormal in January, and fell rapidly in February and continued turbulence in March.
Due to the slow response to the epidemic in the United States, most jewelry stores have not closed their stores and have not dampened people's enthusiasm for purchases, so sales in the first quarter of the United States were relatively stable. In late March, the epidemic was brought under control, and some slow recoverys have occurred in mainland China and even Hong Kong, China.
The current market development is the lowest level since 2009.
Indian Diamond Market
India is an important supplier of finished diamonds to China. The spread of the epidemic in China first affected India’s diamond trade in the first quarter. With the outbreak in Italy, India’s exports to Europe also fell sharply. This led to a slowdown in overall performance in February. The decline in market demand has affected both the purchase of rough and the export of finished diamonds.
In March, India's finished diamond trade almost fell to freezing point. Many companies have expressed the phenomenon of "no business since mid-March".
Belgian diamond market
The trade situation of the Belgian Diamond Exchange can well reflect the trend of global diamond trade:
In January, exports of finished diamonds fell year-on-year, but rough stone imports rose strongly.
In February, the export of finished diamonds fell, and the import of rough stones still rose slightly.
The average prices of rough stones and finished diamonds are also continually declining, and there is a tendency to "fall through".
To avoid a decline in trade volume (at least in the middle of the industry), diamond companies in Belgium and Israel joined forces to organize an online exhibition to make up for the effects of the cancellation of offline exhibitions. According to industry feedback, diamond sales have achieved remarkable results.
Hong Kong Diamond Market
Judging from official retail data, Hong Kong's jewelry and watch sales in January fell 41% year-on-year, and fell 79% in February. Some trade in March has begun to recover.
Israel Diamond Market
Continued demand from the US market has led the Israeli industry to focus on G-I and SI-I1 clarity grade diamonds, and sales of large particles are also good. Both small particles and 0.75ct round diamonds are out of stock. In terms of shaped diamonds, the demand for emerald-shaped and pear-shaped (ie, drop-shaped) diamonds is also very good.
But with the suspension of the US market, the Israeli diamond trade suddenly stopped completely. Flight suspensions, isolation measures, and store closures have all severely hit the Israeli diamond industry.
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