Present Situation of China's Diamond Market

Diamond is that kind of sculpted diamond, which is difficult to exploit and complex to process. Normally, the "4C", namely the Color, Clarity, Caratweight and Cut , these four elements assess the grade and price of diamonds.

In the first half of 2015, China's demand for diamonds declines, but after the latter half of 2015, the demand growth will be better than before. In 2016, diamond growth in the Chinese market will be above 6% at least.

The Chinese market, the purchase quantity of rough diamond also decreases. Mavji Patel says that the profit data of diamond merchants in China dropped by 10% to 15% than the same period last year. "We are purchasing a smaller number of rough diamonds, and it is expected to drop 10% - 15% of demand than the same period last fiscal year".

DE Beers says Chinese retailers have more diamond inventory than they previously thought.

CEO of DE beers, Philippe Mellier says there are two factors that result in the decrease of market demand in China: The first important factor is that China's macro economic growth is slowing, and as a result, the overall consumption has decreased;The second important factor is the downturn of the Hong Kong market in the second half of 2014. It is reported that the market demand share of Hong Kong accounts for 1% - 2% of the global market demand.

The deputy researcher of China international economic and exchange center, Liu xiangdong tell reporters that diamonds are denominated in dollars, and with the U.S. economy steadily recovering, the dollar is strengthening, so the commodity prices will fall off. At the same time, the biggest investment value of diamond is to avoid the risk. The Federal Reserve has repeatedly suggested that it will increase interest rates within the year, and the investment value of dollar assets is far more than precious metals, so the demand for diamond drops.

However, China has become the world's second largest diamond consumer market. Although the demand for diamond market is slowing, most traders are optimistic for the future of the Chinese market.

As the one of the global diamond industry chain who has the final say, Mellier is full of confidence for the Chinese market, "The demand growth of diamond will be better than before in the second half of 2015", " In 2016, diamond growth in the Chinese market will be above 6% at least".