In the past few weeks, diamond manufacturers in India (where 90%+ of diamonds are cut) began heavily reducing their production because of the weak global market. The decline is around 50% year on year, according to estimates by manufacturing executives.
So I asked: What about the other 50%?
India's diamond industry doesn't like laying off workers or shutting down completely because of the impact on morale, future access to a workforce, credit lines, supply of rough diamonds, and more. Instead, most companies try to keep workers busy with whatever stones can make money.
This is why production has switched toward very small polished diamonds, under 0.18 carats. These are still selling, albeit at a slower rate than before. Not every company or department can just change its production to melee overnight, but the overall proportion is shifting.
One of the drivers is the domestic Indian jewelry market, an important destination for small diamonds. Demand is building up ahead of Diwali and the wedding season, as those lucky to be at the IIJS show in Mumbai this weekend (organized by The Gem and Jewellery Export Promotion Council (India)) will have seen.
See the full report here: https://lnkd.in/dV558hAr
Image from Shutterstock.
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