the volume of the diamond trade has declined, despite the expectations with respect to the filling of diamonds reserves US jewelers and China after the holiday season. This was reported in the monthly report Rapaport.
Diamond Index RapNet (RAPI) for 1-carat diamonds dropped by 0.3% in February and 1.2% since the beginning of this year.
The report notes that stocks of diamonds grow, while the major manufacturers of polished stones back to full load production after heavy purchases of rough diamonds in January and February. Demand for diamonds has been stable: February De Beers site is estimated at $ 545 million, after receiving $ 720 million in January. Margin cutters profits declined in 2017, as commodity prices strengthened, and diamond prices declined.
Effect demonetization policy in India has stabilized. Smaller diamond and jewelry companies need to improve transparency and move to electronic payments. Higher management and compliance standards in all industrial centers will increase the bank financing and improve profitability.
Increased investment in marketing will increase consumer demand and ensure long-term profitability. Large marketing budgets need to strengthen the status of natural diamonds as the emotional savings after disappointing sales during the Christmas season and the Chinese New Year.
Hopes of market participants focused on the upcoming show in Hong Kong, as jewelers are expected to return to the market. Rough diamond sales are predicted to slow down, because the large volume of new supply of diamonds hits the market in the second quarter. Sellers are hoping that diamond prices will increase, which will return to profitability.
Oversupply may increase reserves in the diamond cutting segment, if the expected growth in demand for diamonds will not happen.
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At a special meeting with representatives of 27 Export Promotion Councils, held on October 7, the secretary of the Ministry of Trade and Industry of India, Rita A. Teaotsia, reported on measures to support various industries and promised to consider initiatives proposed during the meeting, the portal informs. gjepc.org
Tiousha also said that the Indian authorities have decided to increase subsidies for export initiatives in the current fiscal year from $ 2.7 billion to $ 3.2 billion. probably, this amount will start to stand out on export promotion from next Gödel.
She also noted that the proposals of the members of the Councils for export promotion will take the final form, after which the government will take special steps to facilitate exports.
Praveenshankar Pandya (Praveenshankar Pandya) represented the Gem & Jewelery Export Promotion Council (GJEPC) at the meeting. He talked about the reasons for the slowdown in the exports of precious stones and jewelry from India and highlighted the measures that can help in this situation. Among the proposals of GJEPC, voiced at the meeting - the introduction of fixed taxation for the diamond sector; Signing of agreements on free trade with countries with high import duties; Incorporation of the jewelery and jewelry industry into the interest rate subsidy scheme; Prompt settlement of tax issues in connection with the organization of the Special Customs Zone in Mumbai; Division of categories of natural and laboratory-grown diamonds at the level of standards; Ensuring the availability of duty-free gold trade by specially designated organizations for small and medium-sized jewelry exporters; Creation of a unified system of permits for all special customs zones; The organization of negotiations on the return of the US Generalized System of Preferences for the Indian jewelry sector; The introduction of the Ice Gate system in ports and special customs zones, due to which the volume of document circulation will be reduced, and others.
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