Jobs hit as diamond industry cuts output

The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons.

MSME-dominated diamond cutting and polishing industry is facing a crisis. Several units have reduced their production days and thousands of labourers have gone out of job. Working capital crunch, sluggish demand from China and falling polished diamond prices have been affecting the industry. Jewellery makers too are worried about the increase in the customs duty of gold and silver.

“At least 30 per cent of the MSMEs, which are into polishing works, have reduced their capacity utilization.

Instead of six days, now they are working five days. These are units that procure raw materials from larger companies and return them after polishing. Further, several units in Saurashtra and north Gujarat are affected to the extent that thousands have gone out of job. These units employ 10 to 15 workers. Around 10,000 to 15,000 are out of work and have returned to agricultural jobs,” said Dinesh Navadiya, Member of Surat Diamond Association.

According to him, multiple issues are affecting the industry. Companies have been facing working capital crunch due to shortage of bank finance. While domestic banks have cut their borrowing limits to the gems and jewellery sector, the PNB scam has also made it difficult for exporters to credit from international agencies for buying roughs. Delayed GST refunds too are blocking the working capital.

“Liquidity crunch and lack of adequate finance to the sector have added to the woes. This has resulted in factories limiting their production,” said GJEPC Chairman Pramod Kumar Agrawal.

The off-take of polished diamonds by China either directly or through Hong Kong has come down considerably with the trade war. Weaker Yuan has made imports costly for the jewellery sector.

“The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons. There is a recessionary trend in China. Retail sales are down. The US-China trade war is adding to the volatility and uncertainty. There is destocking by retailers in major consuming countries such as the US and China and they are not reordering,” said Agrawal.

While the demand is slow, the polished diamond prices too have been coming down. Diamonds of one carat and more have been seeing continuous erosion of prices. This has forced the companies to limit their rough purchases. In caratage terms, import of rough diamonds and export of polished diamonds are down by around 23 per cent in the first two months of this fiscal. It was down 13 per cent in last fiscal.

Source: DCLA

Jobs hit as diamond industry cuts output

The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons.

MSME-dominated diamond cutting and polishing industry is facing a crisis. Several units have reduced their production days and thousands of labourers have gone out of job. Working capital crunch, sluggish demand from China and falling polished diamond prices have been affecting the industry. Jewellery makers too are worried about the increase in the customs duty of gold and silver.

“At least 30 per cent of the MSMEs, which are into polishing works, have reduced their capacity utilization.

Instead of six days, now they are working five days. These are units that procure raw materials from larger companies and return them after polishing. Further, several units in Saurashtra and north Gujarat are affected to the extent that thousands have gone out of job. These units employ 10 to 15 workers. Around 10,000 to 15,000 are out of work and have returned to agricultural jobs,” said Dinesh Navadiya, Member of Surat Diamond Association.

According to him, multiple issues are affecting the industry. Companies have been facing working capital crunch due to shortage of bank finance. While domestic banks have cut their borrowing limits to the gems and jewellery sector, the PNB scam has also made it difficult for exporters to credit from international agencies for buying roughs. Delayed GST refunds too are blocking the working capital.

“Liquidity crunch and lack of adequate finance to the sector have added to the woes. This has resulted in factories limiting their production,” said GJEPC Chairman Pramod Kumar Agrawal.

The off-take of polished diamonds by China either directly or through Hong Kong has come down considerably with the trade war. Weaker Yuan has made imports costly for the jewellery sector.

“The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons. There is a recessionary trend in China. Retail sales are down. The US-China trade war is adding to the volatility and uncertainty. There is destocking by retailers in major consuming countries such as the US and China and they are not reordering,” said Agrawal.

While the demand is slow, the polished diamond prices too have been coming down. Diamonds of one carat and more have been seeing continuous erosion of prices. This has forced the companies to limit their rough purchases. In caratage terms, import of rough diamonds and export of polished diamonds are down by around 23 per cent in the first two months of this fiscal. It was down 13 per cent in last fiscal.

Source: DCLA

India Differentiates Synthetics Imports

India has introduced an import classification code solely for lab-grown rough diamonds, enabling the industry to keep better watch of synthetics entering the country.

The government has separated the Indian Trade Clarification (ITC) code for rough synthetic gemstones into diamonds and non-diamonds, the Gem & Jewellery Export Promotion Council (GJEPC) reported last week. The move will help organizations such as the GJEPC track the precise quantities of lab-grown diamonds coming into the market, explained Colin Shah, the council’s vice chairman.

Previously, all rough synthetic gemstones carried the same Indian import code — 71042000 — whether they were man-made diamonds or other stones. From now on, rough lab-grown diamonds will fall into 71042010, while other rough synthetic stones will be assigned 71042090. Trade data for the two categories is likely to be available starting in August, the GJEPC said. Natural rough diamonds will retain their code of 71023100.

ITC codes are unique numbers for each type of product, and are based on the international Harmonized System (HS) of codes. The government announced the change in last week’s Union Budget, following lobbying by the GJEPC.

“This will go a long way in strengthening the efforts of the council to monitor the two pipelines and maintain their integrity,” said GJEPC chairman Pramod Agrawal.

India already has the distinction for polished: Synthetic diamonds carry the ITC code 71049010, while other polished synthetic gemstones are labeled 71049090. However, until now, the GJEPC has chosen not to publish the official trade figures for synthetic diamonds in its monthly data release, instead providing one total for all synthetic polished gemstones, including diamonds, and an equivalent for rough. It’s in the process of changing its reporting methods, and will soon publicize the whole range of available data across rough and polished, it confirmed.

India is one of the first countries to keep close tabs on lab-grown trading, the GJEPC claimed. China already has a similar distinction for its import codes, while the European Union will adopt a Combined Nomenclature (CN) customs code for synthetic diamonds on January 1, 2020, the GJEPC added. Australia and Russia are likely to follow suit, it noted.

The budget — the country’s first since the reelection of Prime Minister Narendra Modi — also saw the introduction of an online service enabling small and medium-sized enterprises to obtain loans of up to INR 10 million ($146,000) within 59 minutes. The government will allocate INR 3.5 billion ($51 million) to subsidize interest repayments for companies of that size that are registered for the nation’s goods and services tax. The initiatives are open to a range of industries, including jewelry.

Additionally, the government will charge a 2% “tax deducted at source” on cash withdrawals exceeding INR 10 million ($146,000) to discourage cash payment for business purposes.

Source: DCLA

India Differentiates Synthetics Imports

India has introduced an import classification code solely for lab-grown rough diamonds, enabling the industry to keep better watch of synthetics entering the country.

The government has separated the Indian Trade Clarification (ITC) code for rough synthetic gemstones into diamonds and non-diamonds, the Gem & Jewellery Export Promotion Council (GJEPC) reported last week. The move will help organizations such as the GJEPC track the precise quantities of lab-grown diamonds coming into the market, explained Colin Shah, the council’s vice chairman.

Previously, all rough synthetic gemstones carried the same Indian import code — 71042000 — whether they were man-made diamonds or other stones. From now on, rough lab-grown diamonds will fall into 71042010, while other rough synthetic stones will be assigned 71042090. Trade data for the two categories is likely to be available starting in August, the GJEPC said. Natural rough diamonds will retain their code of 71023100.

ITC codes are unique numbers for each type of product, and are based on the international Harmonized System (HS) of codes. The government announced the change in last week’s Union Budget, following lobbying by the GJEPC.

“This will go a long way in strengthening the efforts of the council to monitor the two pipelines and maintain their integrity,” said GJEPC chairman Pramod Agrawal.

India already has the distinction for polished: Synthetic diamonds carry the ITC code 71049010, while other polished synthetic gemstones are labeled 71049090. However, until now, the GJEPC has chosen not to publish the official trade figures for synthetic diamonds in its monthly data release, instead providing one total for all synthetic polished gemstones, including diamonds, and an equivalent for rough. It’s in the process of changing its reporting methods, and will soon publicize the whole range of available data across rough and polished, it confirmed.

India is one of the first countries to keep close tabs on lab-grown trading, the GJEPC claimed. China already has a similar distinction for its import codes, while the European Union will adopt a Combined Nomenclature (CN) customs code for synthetic diamonds on January 1, 2020, the GJEPC added. Australia and Russia are likely to follow suit, it noted.

The budget — the country’s first since the reelection of Prime Minister Narendra Modi — also saw the introduction of an online service enabling small and medium-sized enterprises to obtain loans of up to INR 10 million ($146,000) within 59 minutes. The government will allocate INR 3.5 billion ($51 million) to subsidize interest repayments for companies of that size that are registered for the nation’s goods and services tax. The initiatives are open to a range of industries, including jewelry.

Additionally, the government will charge a 2% “tax deducted at source” on cash withdrawals exceeding INR 10 million ($146,000) to discourage cash payment for business purposes.

Source: DCLA

Red And Pink Diamonds Are Tendered By Rio Tinto

Rio Tinto displayed 64 diamonds weighing a total of 56.28 carats, all from its Argyle mine site, in the east Kimberley region of Western Australia, the mining giant said today.

The diamonds make up the 2019 Argyle Pink Diamonds Tender.

Rio Tinto highlighted six diamonds all at or under 2.01 carats:

Argyle red diamond

Lot 1: Argyle Enigma™,1.75 carat modified radiant Fancy Red diamond

Lot 2: Argyle Amari™, 1.48 carat heart shaped Fancy Vivid Purplish Pink diamond

Lot 3: Argyle Elysian™, 1.20 carat modified cushion shaped Fancy Vivid Pink diamond

Lot 4: Argyle Verity™,1.37 carat oval shaped Fancy Vivid Purplish Pink diamond

Lot 5: Argyle Opus™, 2.01 carat round shaped Fancy Intense Pink diamond

Lot 6: Argyle Avenoir™, 1.07 carat oval shaped Fancy Red diamond

The mine, nearly four decades old, is nearing its end.

“Rio Tinto’s Argyle mine is the first and only ongoing source of rare pink diamonds in history,” said Rio Tinto Copper & Diamonds chief executive, Arnaud Soirat, in a news release.

“With the lifecycle of this extraordinary mine approaching its end, we have seen, and continue to see, unstoppable demand for these truly limited-edition diamonds and strong value appreciation.”

Red And Pink Diamonds Are Tendered By Rio Tinto

Rio Tinto displayed 64 diamonds weighing a total of 56.28 carats, all from its Argyle mine site, in the east Kimberley region of Western Australia, the mining giant said today.

The diamonds make up the 2019 Argyle Pink Diamonds Tender.

Rio Tinto highlighted six diamonds all at or under 2.01 carats:

Argyle red diamond

Lot 1: Argyle Enigma™,1.75 carat modified radiant Fancy Red diamond

Lot 2: Argyle Amari™, 1.48 carat heart shaped Fancy Vivid Purplish Pink diamond

Lot 3: Argyle Elysian™, 1.20 carat modified cushion shaped Fancy Vivid Pink diamond

Lot 4: Argyle Verity™,1.37 carat oval shaped Fancy Vivid Purplish Pink diamond

Lot 5: Argyle Opus™, 2.01 carat round shaped Fancy Intense Pink diamond

Lot 6: Argyle Avenoir™, 1.07 carat oval shaped Fancy Red diamond

The mine, nearly four decades old, is nearing its end.

“Rio Tinto’s Argyle mine is the first and only ongoing source of rare pink diamonds in history,” said Rio Tinto Copper & Diamonds chief executive, Arnaud Soirat, in a news release.

“With the lifecycle of this extraordinary mine approaching its end, we have seen, and continue to see, unstoppable demand for these truly limited-edition diamonds and strong value appreciation.”

Red And Pink Diamonds Are Tendered By Rio Tinto

Rio Tinto displayed 64 diamonds weighing a total of 56.28 carats, all from its Argyle mine site, in the east Kimberley region of Western Australia, the mining giant said today.

The diamonds make up the 2019 Argyle Pink Diamonds Tender.

Rio Tinto highlighted six diamonds all at or under 2.01 carats:

Argyle red diamond

Lot 1: Argyle Enigma™,1.75 carat modified radiant Fancy Red diamond

Lot 2: Argyle Amari™, 1.48 carat heart shaped Fancy Vivid Purplish Pink diamond

Lot 3: Argyle Elysian™, 1.20 carat modified cushion shaped Fancy Vivid Pink diamond

Lot 4: Argyle Verity™,1.37 carat oval shaped Fancy Vivid Purplish Pink diamond

Lot 5: Argyle Opus™, 2.01 carat round shaped Fancy Intense Pink diamond

Lot 6: Argyle Avenoir™, 1.07 carat oval shaped Fancy Red diamond

The mine, nearly four decades old, is nearing its end.

“Rio Tinto’s Argyle mine is the first and only ongoing source of rare pink diamonds in history,” said Rio Tinto Copper & Diamonds chief executive, Arnaud Soirat, in a news release.

“With the lifecycle of this extraordinary mine approaching its end, we have seen, and continue to see, unstoppable demand for these truly limited-edition diamonds and strong value appreciation.”

Source: DCLA