According to an analysis of data from the Indian Ministry of Commerce and Industry, reported by RIA Novosti, India broke a record in August when it purchased diamonds from Russia for a price of $215 million, breaking the previous record set in July. At the end of the summer, India boosted the amount of Russian diamonds it imported by 215.1 million dollars, a monthly increase of four times the previous amount and an annual growth of nine per cent. This represented the highest monthly purchase made by the country since March 2018, when it acquired precious stones for a total of $481 million.
Since the beginning of this year, Indian companies have made diamond purchases from Russian enterprises worth $863 million. This represents a 29 per cent increase compared to the previous year’s figures.
At the end of September, “Alrosa” suspended diamond sales for September and October at the request of the Indian industry regulator known as the Council for the Promotion of Export of Precious Stones and Jewellery. After some time, the most influential leaders of the Indian diamond industry proposed that the country suspend all imports of diamond raw materials for two months. India intends to prevent further oversupply to its cutters. Since the pandemic began, this became the most extreme restrictive step possible.
Diamond imports to India fell to under $1 billion in September, a 33% year-on-year decrease.
The suspension of diamond imports to India for two months and the 33% year-on-year decline in September were influenced by excessive purchases of raw materials by diamond cutters. This excess supply persisted amid weak demand in the United States, which can be attributed to macroeconomic uncertainty, high inflation, and competition from synthetic diamonds (Rapaport).
These developments reflect the challenges the diamond industry faces due to shifting market dynamics and changing consumer preferences.
It is to be noted that De Beers’ sales in the 8th cycle dropped to $200 million, the lowest since 2016, excluding the peak of COVID-19 disruptions. The company’s EBITDA in the first half of 2023 declined by 63% year-on-year.
De Beers reported minimal sales in the 8th cycle, the lowest since 2016. The company disclosed another drop in revenue, with a 46% month-on-month and a 61% year-on-year decline at the end of the 8th cycle. The weak performance of end markets, including the United States and China, significantly impacted the diamond mining sector. De Beers reduced the availability of diamond raw materials by limiting sales to rebalance the cutting sector and will invest an additional $20 million in promoting natural diamonds.
