China expected to be big in diamond demand
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COMMODITIES & AGRICULTURE:
By Adrienne Roberts
Financial Times; Oct 10, 2002
China is expected to become a powerhouse of diamond demand in coming years. At the Antwerp Diamond Conference this week some experts forecast growth of 20 to 25 per cent a year over the next decade.
With approximately 20,000 polishers, China has become the second biggest polishing centre after India.
"Today, the majority of the manufacturing there is contracted by Belgian, Indian and Israeli diamond companies that have switched their production to low-cost China," said Marcel Pruwer, managing director of International Economic Strategy in Antwerp.
"A growing percentage of rough is moving towards China and some of our clients are now constructing high-tech, large new factories. A number of polishing factories employ over 2,000-3,000 workers, large by any current standards."
Diamond sales in China have been rising by 25 per cent to 40 per cent a year. According to one set of figures 1990 sales were $140m and 2000 sales were $610m. In 2002, domestic retail sales could top $1bn.
"We are expecting a further quantum jump in Chinese activity after several recent milestone events," said Mr Pruwer.
These include the establishment of the Shanghai Diamond Exchange Administration and significantly reduced tariffs and taxes on importing diamonds. Adrienne Roberts, London |
