Diamond Manufacturers

Diamond Manufacturers

Indian Diamond Manufacturers agree to reduce diamond production for the fourth quarter.  The Gems and Jewellery Export Promotion Council (GJEPC) pledged to reduce their diamond manufacturers levels of up to 50 percent.  Thereby they will be able to avoid a liquidity crisis plaguing the industry.  The Council mentioned that diamond manufacturers have already begun to taper off factory output.  Diamond cutters and dealers saw the past few months lack profitability resulting in high prices of rough diamond prices.  Moreover, the volatility of the rupee and a slowdown in demand.  

Diamond Manufacturers and Cutters

Diamond manufacturers further indicated that a voluntary reduction in production might continue, and even intensify in 2014 if they do not see a sustained profitability in the polishing of rough diamonds.  GJEPC cited in particular that the profitability in manufacturing of rough that become polished diamonds in sizes below 0.30 carats in weight. Vipul Shah, the chairman of the GJEPC had this to say, "rising [rough] prices, currency fluctuations and limited financing options – with banks having become very stringent on financing –  have recently had a severe impact on diamond businesses. This phenomenon has assumed critical proportions [requiring] a call for austerity measures among the trade fraternity, with the view to balance the equation between manufacturing and exports.”  In the last week the council met with prominent medium- and large-scale diamond manufacturers to discuss concerns faced by the diamond cutting and polishing sector.

Diamond Cutters and the GJEPC

The GJEPC council reports that diamond manufacturers expect their polished production to be 30 to 50 percent below levels typical levels during this time of the year. Diamond cutters and manufacturers also suggested that the voluntary reduction in production might continue, and even intensify in 2014, if profits of polished diamonds do not see a return to normal levels.  The manufacturers reported a lack of profitability in the manufacturing of rough stones that become polished diamonds in sizes below 0.30 carats. The GJEPC has formed a trade advisory committee to develop an appropriate response to the challenges faced by the industry.  And help spur growth even given the current environment.  The council called on industry stakeholders to act responsibly.  And also to ensure that their actions don’t precipitate any long-term damage to the industry in India. Furthermore, the council fell short of halting rough imports.  As it had ordered during the 2008 financial meltdown.  They stress that the current scenario did not warrant any further steps.  Sans other than those already taken by its members. http://www.diamonds.net/News/NewsItem.aspx?ArticleID=44706 http://rough-polished.com/en/analytics/77889.html Diamond Prices