India's rough diamond imports dip

The facts are out and the future is bleak for Surat’s diamond industry.

According to fresh data, India’s import of rough diamonds in May 2009 climbed down by 20 per cent at Rs 2,978 crore, while in the same month last year the country had imported rough diamonds worth Rs 3,714 crore.

The import of cut & polished diamonds in the said month was worth Rs 2,234.94 crore, showing a decrease of 11 per cent over cut and polished diamond imports during May 2008 when it amounted to Rs 2,012 crores.

Import of gold bars increased and amounted to Rs 1,729 crore during the month, while in May 2008, the country had imported gold bars worth Rs 1,404 crore.

India’s diamond industry exported a $888 million worth of polished diamonds in May, a drop of 34.2% compared to the same month last year, while volume by carat was 17% lower than last year, at an average value of $314.30 per carat. One reason for the lower import levels of rough diamonds into India is the very large inventory of polished diamonds in India, at a time of low consumer demand, which has forced manufacturers to decrease capacity.

India’s diamond industry has suffered greatly from the global recession, forcing the lay-offs of hundreds of thousands of skilled diamond workers.

Source: Commodity Online
(June 17, 2009)

India's gem, jewellery industry chief sees signs demand improving

MUMBAI, May 4, 2009 (JO) - Vasant Mehta, who was elected late in 2008 as Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), tells Jewellery Outlook in an interview he sees markets growing in the Middle East, China and Eastern Europe.

Jewellery Outlook: What are the main reasons for the steep decline in India's gem and jewellery exports in the past several months?

Vasant Mehta: The recession has affected the gem and jewellery industry along with many other industries. The effect on this luxury product impacts more, as it is the last item on the consumer's shopping list.

Jewellery Outlook: When do you foresee a recovery in the market? Have you seen some signs of improvement?

Vasant Mehta: We are presently seeing improvement as the demand from overseas and domestic markets has increased compared to previous months. Production has also reduced and accordingly the markets will recover faster than expected. However, total recovery can only be expected at the end of the recessionary period.

Jewellery Outlook: What are India's main markets for gem and jewellery exports? What is the worst performing market, and which markets have shown resilience?

Vasant Mehta: The United States has always been the largest consumer market for the gem and jewellery industry. However, presently the Middle Eastern market has grown considerably. Apart from these, Hong Kong is also showing steady growth. There has been a considerable fall in the Japanese market, whereas in China and CIS countries demand is growing and business there is improving.

ewellery Outlook: How have India's gem and jewellery exports fared in the U.S. market, perhaps the worst hit by the global credit crisis. When do you foresee an improvement in India's exports to the U.S.?

Vasant Mehta: What we see in the U.S. market is a fall in demand for diamonds and diamond jewellery, compared with electronic and other luxury products in the last few years. The recession and financial crisis have further pushed demand down in the entire luxury segment. However, diamonds will be in demand as long as people get married, and we see good growth in exports to the United States in the second half of this year.

Jewellery Outlook: What has been the impact of slowing exports on the domestic Indian gem and jewellery market? Have there been significant job losses, company closures and shrinking margins in the industry?

Vasant Mehta: The domestic consumer market is much better and is in fact growing. While in the manufacturing sector of the export market there have been job losses and some factory closures, exports are showing signs of improvement.

Jewellery Outlook: Has the Gem and Jewellery Export Promotion Council taken special
measures to tackle the crisis and increase exports of gems and jewellery to key markets?

Vasant Mehta: Our promotional and marketing efforts in finding new markets have been very successful and we are focusing more on them. This year we will be holding buyer-seller meets with industry participants from China and Europe and exploring the Australian and Vietnamese markets.

Jewellery Outlook: What response have you seen to your India International Jewellery show (IIJS, 6-10 Aug, 2009) this year? Do you think the number of exhibitors and visitors is going to be lower this year than in previous years?

Vasant Mehta: Our show has always been very successful every year and this year too there has been increased demand from exhibitors. The IIJS is now a "must visit" show for domestic as well as international visitors. We will be creating more booths this year as there is a long waiting list of exhibitors who want to participate.

Jewellery Outlook: Which countries have shown most interest in this year's jewellery show? Are you planning special measures and promotional activities to attract overseas visitors and exhibitors to the event?

Vasant Mehta: We get visitors and delegations from over 15 countries. We have created international pavilions for overseas exhibitors from Israel, Belgium, Italy, Turkey and several European and Middle Eastern countries.

Jewellery Outlook: How do you see prices of rough diamonds by the end of 2009? Do you think prices will remain depressed due to falling global demand for luxury items amidst the financial crisis?

Vasant Mehta: The prices of rough diamonds will go up in the second half of 2009 and this trend will continue. The supply is going to reduce due to closure of certain mines where the production is going down. Diamond demand will outpace supply and will result in increased prices.

Jewellery Outlook: How do you see global gold prices and demand for the metal in India in the coming months?

Vasant Mehta: India has always been a large market for gold and demand for gold grows year after year. The price of gold however depends on many other factors but I see prices stabilizing at current levels this year.

Source: Jewellery Outlook

World Global Jewelry Trends For 2010 Prediction by LeVian and Swarovski

Alpana Gujral Design (Earrings)

According to nationaljewelernetwork.com, at the Las Vegas jewelry shows, manufacturers Le Vian and Swarovski both held events to broadcast their predictions for upcoming jewelry trends.

LeVian said one focus for the company has been on all things 'green', whether that means nature-inspired designs that incorporate butterfly or snake motifs, or designs featuring green-toned gemstones such as quartz, beryl, tsavorite or alexandrite juxtaposed with earthy hues such as brown and yellow.

Another major trend for Le Vian in 2010 will be its use of "chocolate diamonds," a term the company recently won legal rights to use, according to LeVian. The brown-toned diamonds will be seen in the "Eddie LeVian Signature" collection of nature-inspired, cutout designs, as well as in additional pieces that the company says exemplify upcoming trends: chunky chocolate diamond pieces combining natural fancy color rough diamonds and pave-set diamonds, "gladiator-style" rings and bangles featuring crossover styling, medallions, double-hoop earrings, stacking pieces and motifs such as logos, hearts, knots and paisleys.

As for Swarovski, on the same day as the Le Vian presentation, the renowned crystal manufacturer's product brand, Enlightened--Swarovski Elements, presented its own vision on trends for 2010 with the help of Gem Visions, the brand's own forecasting service for design trends.

Over the last year, Gem Visions' international team of trend and jewelry experts explored a broad palette of socio-cultural implications to come up with four distinct "mega trends" that they believe are most likely to influence fine jewelry. For 2010, those trends are: false nudity, oversized games, pure chaos and divine chimeras.

The first features ultra-light, airy designs focusing on light and transparency yet counterbalanced by minute details and rendered in milky pastel colors such as pale olive green, sugar-almond tones, salmon pink and deep powder blue.Designs in the "oversized games" category feature a theatrical stylization of nature with extravagantly sculptural, playful forms in shocking and acidic colors juxtaposed with cold, concrete neutrals.

Draped materials, layers and random imperfections in stones and metals will be some of the design characteristics for pieces that fall under the "pure chaos" category. A mix of multicolors and monotones will make up the color palette. Finally, "divine chimera" designs will be expressed through mismatched materials and hot oranges, reds and corals complemented by opaque shades of anthracite and brown. Pieces within the category are meant to unveil personal identity and express fantasy and escapism.