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European Mkts Brings Cheer to Diamond Exporters

The opening up to the European and Far East markets has brought some cheer to India’s diamond exporters , although production of polished diamonds has slowed down in Surat amid the second wave of the Covid-19 pandemic. Diamond traders are hoping that the surge in infections in Surat is brought under control by June so that they can ready their stock for the Las Vegas jewellery show which is slated to take place in August. “The US demand has remained strong  since the holiday seasons. Now, with vaccination in place in Europe, demand will come from those countries soon. Also, the Far East looks promising, ” said Vipul Shah, vice chairman , Gem &j jewellery Export promotion council. “But productions has slowed  down in Surat because of lockdown and spread of the virus. The trade is hoping that the situation will improve as the vaccination drives picks up there. The upcoming Las Vegas show in the US in August is very important to us . Sachin Jain , managing director at de Beers India, said overseas diamond demands has not fallen despite the pandemic. According to Rapaport, diamond markets saw a mixed trand in April. A robust recovery in the US and China drove optimism but sentiment weakened owing to the spike in covid-19 cases in India. Surat based manufacturers reduced capacity as infection rates rose. Grading labs experienced a backlog because of operating restrictions.A RapNet Report said diamond manufacturers in India fell a estimated 30-40% following the second coronavarius wave in mid march. The Gemological institute of America extended its grading time to over a month at its Mumbai and Surat labs. Supply volatility is likely in the short terms and may impact polished diamonds prices. More goods will become available once the GIA reduce its backlog, but fewer goods will be entering the markets afterwards due to the current drop in manufacturing. RapNet said the outlook for retail trade is positive. US jewellers are seeing strong sales amid successful vaccination drive.S-ET

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