Since March 2022, both the polished diamond import and diamond retail market have taken a toll from a new wave of Covid-19 pandemic in China, as the local administrations nationwide have strengthened preventive and control measures.
According to the latest data from the Shanghai Diamond Exchange (SDE), diamond transactions on the SDE totaled US$2.056 billion from January thru June 2022, decreasing 46.2% compared to the same period in 2021. The diamond transaction value records the total rough and polished shipments in and out of the SDE, and reflects how active the trading activities are. Meanwhile, net import of polished diamonds reached US$1.01 billion, declining 35.9% year on year of 2021.
Since June, the diamond market has shown signs of recovery as the Covid-19 pandemic has been effectively contained across the country. Net polished diamond import through the SDE reached US$441 million in the month of June, up 48% year on year.
"With the launch of economic stimulus packages by the Chinese government, we believe the domestic consumer market will be back to the track of growth in the second half of the year. The demand for wedding and diamond jewellery, which was greatly suppressed by pandemic in the first half of the year, will be gradually released," concluded Lin Qiang, Vice Chairman of the World Federation of Diamond Bourses (WFDB) and President of the Shanghai Diamond Exchange (SDE).
From 2002 to 2021, net import of polished diamonds via the SDE has grown from US$31 million to a record high of US$2.924 billion, with a total increase of 94 times and an average compound annual growth rate (CAGR) of 27%, displaying a wavy growth pattern since 2010.