The diamond industry concludes a challenging half year
Raw prices remained high and polished prices fell slightly, a sign of excess stockpiling
Although the diamond industry started well in 2017, a summary of the data in the first six months of the year may indicate a slowdown in momentum, according to a survey published by diamond industry analyst Paul Zimnisky, which summarizes market developments in the first half of the year.
China is strengthening at the expense of the United States
In the US, the leading market in the diamond industry, slightly disappointing sales of diamond jewelry were recorded, even though the country's economy recorded strong overall performance. In China, the second largest market, however, there has been an improvement in demand for diamonds, and a general prosperity of the market.
The analysis of the data in the first half of 2017 also shows that while the prices of rough diamonds remained high, the prices of polished diamonds fell slightly, as a sign of an accumulation of excess inventory. Demand from end consumers in the US was steady, at best, and leading jewelry companies recorded a slight decline in sales.
According to Zimniski's analysis, the reason for this lack of performance in the US lies, among other things, in declining shoppers' movement in US malls, as well as operational performance and the closure of physical stores, as part of a move by many retailers seeking more online presence. Better and more lucrative.
In China, on the other hand, positive diamond sales were due in part to an increase in the volume of jewelry purchases in China itself, at the expense of buying jewelry during travel to other countries, as was the case in the past. Earlier in 2016, the Chinese government took a series of steps designed to increase luxury spending in the domestic market, making the move worthwhile. This development has had an impact on players in the diamond industry in the US, Europe and Japan.
It was also written that new marketing strategies - focusing on the intergenerational gap, and changes in the preferences of younger consumers in purchasing luxury products such as diamond jewelry - have certainly contributed to sales in the other major markets.
De Beers and Alrosa dominate the market
The analysis also dealt with the situation of the global diamond mining companies, De Beers and Alrosa. According to the report, in January-June 2017, De Beers sold diamonds worth a total of $ 2.9 billion - a decrease of 3.6% compared to the same period in 2016, but an increase of 16.8% compared to the first half of 2015. Alrosa, on the other hand, sold In the first half of the year, diamonds worth $ 2.5 billion, a decrease of 0.4% compared to the same period last year, but an increase of 14.8% compared to the first six months of 2015.
The summary of the data in the report shows that the two diamond giants continue to control the market to a considerable extent. De Beers and Alrosa are currently responsible for approximately 39% and 28% of global diamond production in terms of value, and for approximately 22% and 26% of diamond production in terms of volume, respectively.