Weekly Digest: German diamond demand, Alrosa auction results and a new Surat bourse
In this week’s round-up of the biggest headlines from the international diamond and diamond jewellery industries, we analyse the German market, reflect on Alrosa’s recent rough diamond auction results and consider interesting developments in Surat and Mumbai.
Alrosa sells large diamonds at auction in Israel for $13.7 million
Alrosa sold special size rough diamonds over 10.8 carats in an auction at the International Diamond Week in Israel (IDWI) for $13.7 million.
The Russian miner sold 105 gemstones with a total weight of 1,665 carats, it said in a statement.
"More than 100 companies from different geographical trade and manufacturing centres took part in the auction,” said Yury Okoemov, deputy CEO of Alrosa. “39 companies were recognized as winners, most of them from Israel. The auction has completed with good results. We saw a significant premium to starting price.”
A successful rough diamond auction resulted in 137m for Alrosa. Image credit - Alrosa website.
Russian laws say special size rough diamonds over 10.8 carats can be sold only at auctions. In 2018, Alrosa plans to hold five more auctions in Ramat Gan (Israel).
German diamond jewellery demand seen steady in 2018
German diamond jewellery demand is expected to remain stable in 2018, with a stronger euro against the U.S. dollar making diamonds more affordable to the domestic trade, a senior jeweller said.
Speaking at a news conference at the start of the Inhorgenta Munich trade event, Stephan Lindner, President of Germany’s Federal Association of Jewellers, said turnover was likely to be little changed year-on-year and that jewellers would pass on cost savings from cheaper sourcing of diamonds wherever possible.
Jewellery and watches sales in Germany were estimated to be up 0.5 percent year-on-year to 4.7 billion euros in 2017, Lindner added.
Exhibitor numbers at Inhorgenta Munich were up 4 percent year-on-year in 2018, reinforcing the show’s status as a leading European jewellery and watches show, said Klaus Dittrich, Chairman of the board of the Munich Trade Fair, which organised the event.
Related News: CARAT+ exhibitor rebooking rate surpasses 90% for second edition
Diamond bourse planned for Surat
Construction is under way to develop a diamond bourse in Surat in India that will house more than 4,400 diamond merchants, Rapaport News reported.
Surat is a leading centre for diamond manufacturing and is home to many of the largest polishing factories.
The complex is scheduled to be completed in 2020, and to be fully operational by the following year, spokespeople for the project told Rapaport News.
The proposed Surat Diamond Bourse development. Image credit - Surat Diamond Bourse Facebook.
Located near the international airport, the Surat Diamond Bourse (SDB) will consist of nine towers covering 1.54 million square feet, according to the SDB website. It will contain its own independent customs office, international banking facilities and diamond-testing laboratories, among other businesses.
The bourse will be located inside a government-planned Diamond Research and Mercantile (DREAM) City.
India’s largest jewellery park to be built in Mumbai
The Gem & Jewellery Export Promotion Council (GJEPC) has signed a Memorandum of Understanding with the Maharashtra Industrial Development Corporation (MIDC) to create India’s largest jewellery park in Mumbai.
“The proposed India Jewellery Park will be established on 25 acres of land with four million square feet of built up area housing more than 5,000 gem and jewellery units in varied sizes ranging from 500 to 10,000 square feet,” the GJEPC said in a statement.
The project will attract an investment of over 130 billion rupees (some US $2 billion) over three to five years, generating about 100,000 new jobs in Maharashtra.
Words by David Brough
Discover more industry news on the CARAT+ website every week.
CARAT+ is The World’s Premier Diamond Event, covering the full spectrum of the diamond and diamond jewellery trades. The show specialises in four sectors: loose diamonds, branded diamond jewellery, non-branded diamond jewellery and services for the diamond jewellery industry.
Taking place in Hall 1 and Hall 4 of the Antwerp Expo on 6, 7 and 8 May, entry to the show is restricted exclusively to industry professionals, including diamond and jewellery wholesalers and manufacturers from around the world, and jewellery retailers from across Europe and the wider world.