Pressure on India’s diamond sector in 2019
The melee market became more selective The sharp decline in prices of small, low-value diamonds will exert further pressure on India’s manufacturing sector, according to the latest issue of the Rapaport Research Report. Prices in some categories have dropped by up to 20% in 2018 due to an oversupply and weaker demand. The report, “A Crisis in Melee,” outlines four factors influencing the weakness in the market for small diamonds: 1: The addition of three new mines in 2017 brought global rough production to its highest level since 2008, resulting in an excess of supply. 2: Manufacturers became cautious due to tighter credit in India and the depreciation of the rupee. 3: Some US retailers are shying away from natural melee because of the threat of undisclosed synthetics. There is a shift toward better-quality goods, which includes a small but growing preference to use better-quality lab-grown melee rather than lower-quality natural stones....