Diamond mining firms De Beers and Alrosa are pinning hopes on India’s diamond trade, which is seeking to recover from a production loss caused by a surge in Covid-19 cases, for an uptick in rough diamond sales this year.
“The demand we have seen for our rough diamonds during the start of 2021 have been in line with expectations,” Paul Rowley, executive vice president, diamond trading at De Beers, told ET. “This reflects the continued and sustained demand for polished diamonds the Indian midstream has experienced throughout the last 18 months, and how impressively the Indian midstream has adapted through these challenging times.”
Rowley further said, “Since the start of the pandemic we have offered our sightholders unprecedented flexibility and continue to offer remote viewings of rough goods in Antwerp, Dubai, Hong Kong and Tel Aviv, as well as enhanced flexibility on certain goods sight-by-sight.
Sightholders are authorised bulk purchasers of rough diamonds.
“We have been encouraged by the demand for our rough diamonds at the start of our June sales cycle,” said Rowley.
Russian diamond mining firm Alrosa reported sales of $365 million of rough and polished diamonds in May, comprising rough diamond sales of $346 million and polished diamond sales of $19 million.
In the first five months of 2021, total rough and polished diamond sales accounted for $1,926 million, $1,855 million of rough diamond sales and $71 million of polished diamonds.
Jim Vimadalal, director of Alrosa’s India representative office, said: “Our May sales results demonstrate strong demand coming from Indian midstream despite Covid situation in April and early May. End-demand for diamond jewellery remains robust in all key regions. Sentiment is very high as Covid cases are declining in India. Diamond market in India is upbeat as orders stream in. Rough diamond trading is very strong.”
Meanwhile, on Tuesday, the Gem & Jewellery Export Promotion Council (GJEPC) released the gem and jewellery export figures for May. The council compared export figures with May of 2019 as there were hardly any exports in May last year due to the nationwide lockdown.
Exports of gems and jewellery declined 10% in May to $2.89 billion (declined 5% in rupee terms to Rs 21,188 crore), as compared to $3.20 billion (Rs 22,388 crore) in May 2019.
“India’s gem and jewellery exports in May 2021 slipped into negative territory due to the severe disruption in manufacturing activity caused by the outbreak of the second Covid wave across the country,” said GJEPC chairman Colin Shah. “The mix of partial and complete lockdowns in different states led to limitations on workforce capacities and related manufacturing activities.”