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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 demand for the diamond market has dropped significantly. The price of polished diamonds rose in January and February. The decline and March were basically balanced. The diamond trade of various countries was hit, and the sales volume dropped significantly or even almost zero.
Finished diamond prices
Since the end of last year (December) was the peak sales season, the actual average price of polished 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 balance in March was entirely due to two reasons:
1. The volume of transactions dropped sharply
2. Everyone is worried that price cuts will cause a snowball effect, which will cause prices to continue to fall sharply, and even cause many companies to close.
The price of 0.3-carat diamonds continued to rise, rising by 0.6% in January, 1.6% in February, and 1.5% in March. The price of large particles (3ct) also performed well in March.
Finished drill market demand
The overall sales of polished diamonds did not show any abnormalities in January, dropped rapidly in February, and continued turbulence in March.
Due to the slow response to the epidemic in the United States, most jewelry stores did not close their stores and did not discourage people from buying enthusiasm. Therefore, sales in the first quarter of the United States remained relatively stable. In late March, the epidemic was brought under control, and some slow recovery appeared in mainland China and even Hong Kong.
The current market development is the lowest level since 2009.
Indian diamond market
India is an important supplier of polished diamonds to China. The spread of the epidemic in China first affected India’s diamond trade in the first quarter. With the outbreak of the epidemic in Italy, India's exports to Europe have also fallen sharply. This led to a slowdown in overall performance in February. The decline in market demand has not only affected the purchase of rough stones, but also reduced the export of finished diamonds.
In March, India’s polished diamond trade almost fell to a freezing point. Many companies have expressed the phenomenon of "no business at all 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, the export of finished diamonds fell year-on-year, while the import of rough stones increased strongly.
In February, the export of finished diamonds declined, and the import of rough stones continued to rise slightly.
The average price of rough and polished diamonds is also declining, and there is a tendency to "fall through".
In order to avoid a decline in trade volume (at least in the middle reaches of the industry), Belgian and Israeli diamond companies have joined forces to organize an online exhibition to compensate for the cancellation of offline exhibitions. According to industry feedback, diamond sales have achieved remarkable results.
Hong Kong Diamond Market
According to official retail industry data, Hong Kong’s jewellery and watch sales in January fell by 41% year-on-year, and by 79% in February. Part of the trade has begun to recover in March.
Israel Diamond Market
The continued demand from the US market has led the Israeli industry to concentrate on operating G-I color and SI-I1 clarity diamonds, and the sales of large particles are also good. Both small particles and 0.75ct round diamonds are out of stock. For special-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, Israel’s diamond trade suddenly stopped completely. The suspension of flights, quarantine measures, and shop closures have all severely hit the Israeli diamond industry.
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