This decline in exports can be attributed to the overall slowdown in global consumption as the geo-political tension continues to remain a deterrent to demand, compelling buyers to make cautious buying decisions.
The export of cut and polished diamonds saw a decline of 23.8% in August 2024, standing at USD 1036.63 million compared to USD 1360.39 million for the corresponding period last year. This is due to the overall dip in international markets. Moreover, with pro-longed geo-political crisis, US elections approaching along with low demand from a key market like China has further pushed the exports downwards.
Imports of rough diamonds stood at USD 4978.04 million in August 2024, showing a decline of 22.58% when compared with the imports for the same period last year which stood at USD 6429.76 million. This downfall can be attributed to the inventories that have piled up due to the excess supply followed by limited to negligible demand. Hence, the traders and merchants eagerly await to clear off the unsold inventory to restore the demand.
The export of polished lab grown diamonds during August 2024 stood at USD 99.64 million showing a decline of 15.30% as compared to USD 117.63 million for the previous year. Since the prices of natural diamonds has been declining continuously, it has created an impact on prices of lab-grown diamonds as well resulting in fluctuations in its prices.
The export of gold jewellery in August 2024 stood at USD 687.69 million, showing a decline of 1.15% compared to USD 695.65 million for the same period last year. This can be attributed to the strengthening of gold prices on the back of anticipated rate cut by the US Fed.Export of coloured gemstones during August 2024 stood at USD 156.41 million witnessing a decline of 19.91% compared to USD 195.3 million for the same period last year due to the lack of robust demand in the international markets.Commenting on the declining exports, Colin Shah, former chairman of GJEPC and managing director of Kama Jewelry said, “With about 60 plus countries in the world undergoing elections in the days to come, the trade activities could witness a slowdown for the time being due to various restrictions. However, we hope to see normalcy soon after the elections are over in the concerned countries, which will help in revival of demand.”