News from Mumbai
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16th September 2009
Dear Friends
In less than one month, the Indian Diamond Market appears to have turned around.
First is the good news that the majority of companies are seeing improved demand for Pique Polished mainly SI2 to I3, I4 and in fact, there is a shortage felt in few ranges. Demand has opened up mainly from local Indian jewellers located in Delhi and other major cities. This has occurred post the successful India International Jewellery Show (IIJS).
Second is that all Fancy shaped polished, from 8¢ to 70¢, is moving fast. Most Indian companies, in loose polished and jewelry, are very positive about the Hong Kong Jewelry Show which will start on Monday, 21st September.
Jewelry manufacturers in MIDC and other local units are much busier than jewelry manufacturers in SEEPZ, except for a few big companies who have good orders from some Majors in USA.
During August Sight week, there were hyped up reports about $1.10 Billion worth of rough arriving in Antwerp and the market not being able to absorb it. Currently, prices are back to where they were prior to the Sight Week, after falling during and immediately following the Sight.
Recent reports say that over the past week, rough demand has picked up smartly in the Mumbai rough market due to shortages of a few rough ranges.
I was in Surat last week visiting factories and the general consensus was that production is still 20% less compared to last year's pre-Diwali manufacturing level. I remember when I visited Surat exactly a year ago, the mood was very negative and most of the substantial manufacturers had reduced their manufacturing levels and started renovating their factories premises 20 days before Diwali, even though normally, this would have been the busiest manufacturing period in the year. On this trip to Surat, it was clear that confidence has returned to the manufacturing community and a few factories were even running extra shifts to convert as much rough into polished before the Diwali vacations start on 15th October.
There now is a fear that post Diwali, many factories will have less workers returning back on time and already a shortage of skilled and experienced workers is being felt today.
The article which appeared in Times of India dated 8th September stating that the Indian domestic diamond jewellery market would touch $6 Billion by 2011 was well timed and helpful for our industry. Although rising gold price may have hurt the overall gold jewellery market, it has been beneficial to our diamond jewellery market as it has led to a change in consumers' buying decisions - consumers now want jewellery with more diamonds and less gold.
Today's Economic Times dated 16th September has an equally interesting article that talks about "Its celebration time for branded jewellers" and that sales will grow more than 20% this festive season. Jewellers are seeing this actually happen now and there is a growing confidence in the Indian diamond studded jewelry market.
Finally, the article in today's Times of India dated 16th September quoting Ben Bernanke statement that USA is almost out of recession, is a confidence boost for all Indian diamond exporters.
To view the above mentioned articles please click on the following links:
Times of India 8th September 2009
Economic Times 16th September 2009
With warm regards
Sharookh Kocheck
Chief Executive Officer, Mumbai