There is a sharp rise in the prices of some types of polished diamonds due to the Chinese demand in the past one month. The prices of polished diamonds have been risen up to 5% and this will impact directly t boost the production in the diamond production centres of Gujarat. Due to demonetization of high currency notes by Indian government last year, the diamond production centres of Gujarat were down after the fall of domestic demand.
By FY18 as per industry experts, it is expected that the demand will improve but there is also a reason to worry is increasing gold prices. as the rupee is stronger, the cost of production will also increase. This trend is good for the industry as Demand from China and US is increasing. The prices of rough stone have also gone higher by 2-3% as the demand for polished diamonds is on a rise.
In February 2017, due to the Chinese New Year, the demand was expected to rise and the diamond merchants have imported more rough stones. GJEPC made a data and according to that rough stones import was at 17.8 million carats in February 2017 which were 14.1% when compared to the import in February 2016 more than 15.6 million.
The domestic demand had fallen after demonetization and it was expected to improve as shown by the smaller diamonds that have firm prices in the local market. in June first week, for the Las Vegas diamond show, Many large manufacturers are using full capacity to prepare.
In diamond jewellery Gold is a major raw material and with ongoing tensions over North Korea missile program prices of the yellow metal have been steady. After the $1,295.42, Spot gold has been around $1,284.56 per ounce and on November 9th it was the last highest rate.
By the traders, financial transactions about 80% have been moved to cashless modes. The diamond industry of Surat is calculated to be of about Rs 90,000 crore.