De Beers also said it has executed 80% of its orders with Indian manufacturing units in Surat and retailers across the country to cater to the domestic market.
Simultaneously, De Beers and Alrosa have decided to provide flexibility to Indian diamantaires in purchase of diamonds in the August trading session so that the inventory at the manufacturing end does not go up. Alrosa has provided zero buyout requirement for its buyers for the August trading session, giving respite to Indian manufacturers who have already reduced imports of rough diamonds since the outbreak of coronavirus.
“The Indian market will witness a rebound in diamond consumption in November and December as many weddings have been pushed back this year due to the outbreak of the pandemic,” De Beers India managing director Sachin Jain told ET. “Since there is still uncertainty over how long travel restrictions will continue, families are cutting down on honeymoon packages and focusing on jewellery. Also, Diwali this year is in the month of November. So we are expecting good sales for our Forevermark diamonds in November and December.”
Jain said it has been challenging to manufacture small diamonds amid the pandemic as the cutting and polishing units in Surat are working with just 33% workforce. “Also, it is difficult to maintain social distancing on the shop floor. Despite all this, we have been able to execute 80% of our orders.”
Jim Vimadalal, director at Alrosa’s India office, also said demand will go up during Diwali and wedding season at the end of the year.
Jain said De Beers will keep on providing flexibility to its buyers in the August trading session, which is slated to be held in the last week of the month. A drop in supply from miners, as well as rock-bottom manufacturing levels in India, has created shortages in select rough and polished categories, according to industry executives. Factories in Surat are now cautiously seeking goods to ensure they meet demand for the fourth-quarter US holiday season.
Vimadalal said though the market has started to gradually recover and diamond trade has begun to revive, Alrosa has kept a zero buyout requirement for its August trading session “Understanding the sectoral structure of demand in this challenging period, the company provides its clients with an opportunity to purchase only the goods they need,” he said. “We are excited to see green shoots in the market as it has turned to recovery mode in recent months. The global diamond trade has started recovering, though still below last year’s numbers, while mid-stream resumed operations at reduced capacity.”
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Wedding demand will drive diamond consumption in the quarter to December - Economic Times
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