Los Angeles, CA, Nov. 10, 2021 (GLOBE NEWSWIRE) -- U.S. diamond prices continue rising due to supply shortage, according to a new report published by IndexBox. In September 2021, diamond prices grew 0.9% from August 2021, Fairfield County Diamonds states. The average price per carat for all diamonds was $11,139.53, up from $11,039.49 a month prior.
The increase in prices is driven by strong demand for jewelry in the U.S. and China set against limited supply as diamond mining and cutting remain low. In the first quarter, global production for rough diamonds fell by 22% to 24 million carats due to suspension at the Canadian Ekati diamond mine, the closure of Australia's Argyle mine, and the decrease in activity at other large mining companies.
American demand for jewelry remains robust. According to a report by Mastercard's ‘Spending Pulse’, U.S. jewelry sales in July 2021 were +82.6% higher than the same period in 2020 and +54.2% higher than those of July 2019.
The financial gains of global gem producers indicate the high demand for diamonds. Rough diamond sales from the world's leading diamond supplier in the jewelry industry, De Beers Group, amounted to $3.5B in 2021 and exceeded sales from 2020 ($2.8B). Sales of rough diamonds from the Russian diamond producer Alrosa in the first half of 2021 amounted to 15.5 million carats, which is 65% higher than last year and 47% higher than Q1 of 2019.
With a spike in Covid-19 cases, India introduced quarantine restrictions, which led to a drop in factory utilization down to 50-70%, an outflow of migrant workers, and a decrease in the volume of diamond cutting and polishing operations. As the incidence rate has declined since mid-2021, there has been a return to operations and an increase in diamond exports from India. According to the Gem & jewelry Export Promotion Council (GJEPC), the total gross diamond export in July 2021 was $2.26B, up 146% compared to the previous year.
The recovery of ample supplies of cut diamonds from India should help limit the rise in prices for the product. An additional factor for prices lowering in the medium term is the gradual recovery of tourist activity, which will contribute to the shift in household spending away from the jewelry sector and toward tourism and the entertainment industry.
Non-Industrial Diamond Production
In 2020, approx. 74M carats of non-industrial diamonds were produced worldwide, reducing by -10.6% against the previous year's figure.
The countries with the highest volumes of non-industrial diamond production in 2020 were Russia (24M carats), Canada (17M carats) and Botswana (13M carats), with a combined 65% share of global production. Angola, South Africa, Congo and Namibia lagged somewhat behind, together accounting for a further 35%.
In 2020, the most notable rate of growth in terms of non-industrial diamond production amongst the main producing countries was attained by Congo, while non-industrial diamond production for the other global leaders experienced a decline in the production figures.
World’s Largest Non-Industrial Diamond Importers
In value terms, non-industrial diamond imports reduced from $108.2B in 2019 to $67.9B in 2020, IndexBox estimates.
China ($5.9B) constitutes the largest market for imported non-industrial diamonds worldwide, comprising 8.8% of global imports. The second position in the ranking was occupied by Thailand ($1.3B), with a 1.9% share of global imports.
In 2020, the value of Chinses imports dropped by -24.3% y-o-y.
World’s Largest Non-Industrial Diamond Exporters
In value terms, Belgium ($8.2B) remains the largest non-industrial diamond supplier worldwide, comprising 13% of global exports. The second position in the ranking was occupied by China ($1.1B), with a 1.8% share of global exports.
In 2020, the average annual rate of growth in terms of value in Belgium totalled -29.5%. In the other countries, the average annual rates were as follows: China (-34.3% per year) and Thailand (-33.6% per year).
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
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Companies Mentioned in the Report
De Beers Group, Alrosa, Rio-Tinto Diamonds, Debswana Diamond Company Ltd., Arctic Canadian Diamond Company Ltd, Lucara Diamond Corp., Petra Diamonds Ltd, Gem Diamonds, Anglo American plc, Rockwell Diamonds, LVMH – Moët Hennessy Louis Vuitton, Tiffany & Co., Bvlgari, Pandora Jewellers, Graff, Cartier, Chopard, Van Cleef & Arpels, Buccellati, Chow Tai Fook, Rajesh Exports, Signet, Chanel.
Sources
World - Non-Industrial Diamonds - Market Analysis, Forecast, Size, Trends and Insights
World - Jewelry - Market Analysis, Forecast, Size, Trends and Insights
World - Diamonds (Industrial) - Market Analysis, Forecast, Size, Trends and Insights
World - Imitation Jewellery - Market Analysis, Forecast, Size, Trends And Insights
World - Watches - Market Analysis, Forecast, Size, Trends and Insights
