Why has rough diamond been out of stock recently?

Recently, the diamond rough market has shown a shortage phenomenon, which is hidden behind multiple repeated and mixed factors. The changes in every link from upstream supply, midstream inventory to downstream demand have a profound impact on the supply of rough diamonds.

Upstream supply reduction

The reduction in upstream supply is the key factor leading to the shortage of rough diamonds, including the closure or reduction of production at major global diamond mines, such as the Diavik mine in Canada, operational difficulties at Renard mine, and industry giants such as De Beers reducing production plans. In addition, G7 countries' sanctions on Russian diamonds have restricted their market access, further reducing global supply. At the same time, mining output has declined due to resource depletion, rising costs and lagging development of new mines. Geopolitical factors have led to restrictions on diamond exports from Russia, especially Alrosa company. Environmental protection and regulation are becoming stricter, and some mines are reducing production or closing down due to non-compliance. After the epidemic, the resumption of production in mines has been slow, and there is a shortage of supply in the short term.

Midstream inventory structure adjustment

Secondly, the adjustment of midstream inventory structure is also one of the reasons for the shortage of rough diamonds. Due to a sharp decline in inventory, the price index of some weight and quality bare diamonds has increased. This may be due to various pressures in the midstream market that have reduced the procurement of rough diamonds. Meanwhile, changes in market preferences have also had an impact on inventory structure. The downstream market's preference for high-grade natural diamond products is gradually increasing, and retailers are more inclined to recommend high-grade natural diamonds. This may lead to the elimination of low-grade or heavily stocked rough diamonds from the market, exacerbating the shortage phenomenon.

Changes in downstream demand

Finally, changes in downstream demand have also had an impact on the supply of rough diamonds. On the one hand, the market recovery after the epidemic is weak, and consumer demand for diamonds has not grown as rapidly as expected. The decline in demand in key markets such as China has had an impact on the import and procurement of rough diamonds. On the other hand, the shift in consumer preferences has also had an impact on the diamond rough market. As consumers' attention to environmental protection and sustainability increases, some consumers are turning to cultivating alternatives such as diamonds. This may have had a certain impact on the market demand for natural diamond rough, thereby exacerbating the shortage phenomenon.

Conclusion

The shortage of rough diamonds is due to a decrease in upstream supply, inventory adjustments in the midstream, and changes in downstream demand. These factors are intertwined, leading to market difficulties. The diamond industry needs to actively respond by adjusting production plans, optimizing inventory, and expanding demand. The government and institutions should strengthen regulatory coordination to promote the healthy development of the industry.

High Light Intelligence Technology, a pioneer in the CVD diamond industry, has advanced MPCVD technology and CVD diamond production workshops. We focus on producing high-purity lab-grown diamonds for the jewelry industry, and at the same time create industrial-grade CVD diamond products, covering single crystals, polycrystalline, films and diamond surface metallization. We also provide 6kw/10kw/15kw MPCVD equipment to help customers in all aspects, from equipment to products, and then to all-round services, to create brilliance together.

*The articles and pictures are only for industry communication and sharing. If there is any infringement, please contact us to delete them.

曼尼森吉他定制

Why has rough diamond been out of stock recently?

分享至微信分享

分享至微信