21.01.2025, 09:29
Russian diamond shipments to one country have collapsed
Source: OREANDA-NEWS
OREANDA-NEWS From January to October, Russian diamond exports to India fell by 17 percent year-on-year. This is reported by the Vedomosti newspaper with reference to data from the Indian Ministry of Trade and Industry.
In the first half of the year, shipments to the Asian country increased by 22 percent year-on-year to 4.1 million carats. Already in August, sales fell 18 times, to 87,440 carats, and in September — 25 times, to 37,220 carats. Later, exports recovered, but by the end of the year this was not enough to compensate for the decline.
In monetary terms, the volume of supplies decreased 1.8 times, to 578.3 million dollars. At the same time, from July to October, export revenues amounted to only 58.3 million dollars (an average of 14.6 million per month) against 520 million in January-June. The average cost of diamonds supplied to the republic decreased by 31 percent year-on-year, to $159.1 per carat.
According to data from the Kimberley Process Organization of Diamond-producing Countries and Importers of Diamonds, global production in 2023 decreased by 8 percent, while exports, taking into account realized reserves, decreased by nine percent. At the same time, Russia reduced diamond production by 11 percent and exports by 12 percent.
Diamonds and polished diamonds have been getting cheaper since the spring of 2022 due to weak demand for precious stones and jewelry and an increase in the production of synthetic stones. Speculative purchases in 2021-2022 led to an 80 percent increase in the price of e precious stones, which led to the accumulation of excess reserves, added Boris Krasnozhenov, head of the Securities Market Analytics Department at Alfa Bank. Now the market is gradually recovering, and the stocks of stones are returning to normal.,
The De Beers Group of companies has already faced difficulties in selling off a stock of stones worth two billion dollars. The reasons for this are competition from artificially grown precious stones, the effects of the pandemic and falling demand in China.
Sergey Takhiev, Head of Alrosa's Corporate Finance Department, suggested that the situation on the diamond market would change in the coming months. The demand for these precious stones will grow as Indian diamond cutters reduce their reserves.
In the first half of the year, shipments to the Asian country increased by 22 percent year-on-year to 4.1 million carats. Already in August, sales fell 18 times, to 87,440 carats, and in September — 25 times, to 37,220 carats. Later, exports recovered, but by the end of the year this was not enough to compensate for the decline.
In monetary terms, the volume of supplies decreased 1.8 times, to 578.3 million dollars. At the same time, from July to October, export revenues amounted to only 58.3 million dollars (an average of 14.6 million per month) against 520 million in January-June. The average cost of diamonds supplied to the republic decreased by 31 percent year-on-year, to $159.1 per carat.
According to data from the Kimberley Process Organization of Diamond-producing Countries and Importers of Diamonds, global production in 2023 decreased by 8 percent, while exports, taking into account realized reserves, decreased by nine percent. At the same time, Russia reduced diamond production by 11 percent and exports by 12 percent.
Diamonds and polished diamonds have been getting cheaper since the spring of 2022 due to weak demand for precious stones and jewelry and an increase in the production of synthetic stones. Speculative purchases in 2021-2022 led to an 80 percent increase in the price of e precious stones, which led to the accumulation of excess reserves, added Boris Krasnozhenov, head of the Securities Market Analytics Department at Alfa Bank. Now the market is gradually recovering, and the stocks of stones are returning to normal.,
The De Beers Group of companies has already faced difficulties in selling off a stock of stones worth two billion dollars. The reasons for this are competition from artificially grown precious stones, the effects of the pandemic and falling demand in China.
Sergey Takhiev, Head of Alrosa's Corporate Finance Department, suggested that the situation on the diamond market would change in the coming months. The demand for these precious stones will grow as Indian diamond cutters reduce their reserves.
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