Diamond exports may rise 15% this quarter

KOLKATA: The diamond industry is regaining lustre as the export market is looking better. The industry is expecting polished diamond prices to rise soon, following the trend in rough diamonds. Rough diamond prices have gone up 4 -5% last month. Overall, diamond exports may grow 15% in the January-March period compared to the same quarter in the previous year.

“We are seeing that buyers in Europe are gaining confidence. The European market suffered a setback following the euro zone crisis. France, Italy and the entire eastern European bloc are gradually getting back into action. And this will translate into better export business in the January-March quarter,” said Vipul Shah, chairman, Gem and Jewellery Export Promotion Council (GJEPC).

He said India's polished diamond exports fell 42% to $5.334 billion in the first three months of 2012. “This trend is expected to reverse in the first three months of 2013 and we will clock a 15% growth,” he added. Exports of polished diamonds in the April-December 2012 period plunged 36% to $11 billion from $17 billion during the same period in 2011.

Abhishek Gupta, president, Gitanjali Gems, said: “There has been an increase in rough diamond prices by 4-5%. There will be an impact of this price rise on polished diamonds as well. But it will take at least 4 to 5 months to have an impact at the upper end of the demand. The lower end of the demand will have an immediate impact due to this rise.” Gupta admitted that the overall global economy was in a better position and this would boost Indian exports of polished diamonds. “The situation in the US is also quite encouraging,” he added. Sources say the first rise in rough prices came from Diamond Trading Company which raised the prices of top quality rough diamonds by 3%. Following this, miners like Alrosa and BHP Billiton have increased the prices of rough diamonds by 3-4%.