07 Dec 2022
DiamondWorld Directory
Home |
Diamond couriers and mining companies tell the industry’s story during COVID-19
Insufficient pricing data for compiling the fancy color diamond index
By: Diamond World News Service
Aug 19 2020 12:25PM
Reference: 25101  


The continuous freeze of business activity during the ongoing COVID-19 pandemic has had a significant effect on the diamond trade. While demand for fancy color diamonds is percolating and sales are in the pipeline, only a limited number of deals are actually executed. Leading diamond courier companies and mining companies have been reporting zero activity at certain periods of time, something that has never been witnessed before in diamond industry history.

The diamond shipping numbers reported by Malca-Amit and Brinks, the world’s leading diamond courier companies, are consistent with the numbers reported by Fancy Color Diamond dealers and mining companies. During April, diamond shipping activity was at zero. However, in the months of May and June, activity started to gradually increase, and today they are hopeful about activity in the second half of 2020 and a rehabilitation of the industry by mid-2021.

In the last few weeks global diamond shipping has slowly resumed and auction houses have presented adequate results for mid-to-low quality Fancy Color Diamonds . This slow stream of transactions, while positive, started too late in the quarter to be included in the FCRF Index.

The transaction input in this quarter was insufficient and could not generate comprehensive conclusions without damaging the integrity of our output. These factors have resulted in the Fancy Color Diamond Index once again not being able to be published. Mining companies have reported the cessation of mining work during certain months and
there has been a very slow return to activity.

This fact has resulted in sluggish sales of rough diamonds in comparison to the corresponding quarter last year. Despite Canadian mines still being on lockdown, some areas in the world are beginning to slowly resume production, such
as the Alrosa mine in Russia and various mines in Africa. FCRF Advisory Board member, Jim Pounds said: “While the relatively long closure of operations or reduced production by the mining companies may result in a shortage of rough
diamonds at the beginning of 2021, it seems that the main factor will be the restricted movement of polished diamonds around the world.”

Below is a short timeline review of Q2 2020 Activity. The mining data excludes mid to small mining companies that do not report data to the market.

Courier companies - Diamond shipping activity was reduced by 90%-100% .
Mining companies - Mining production gradually fell to ~ 30 % in Russia. Mines in Canada
were completely shut down from March. Several mines in South Africa, as well as cutting and
polishing facilities in India, were forced to shut down due to COVID-19 restrictions.
Courier companies - Diamond shipping activity was reduced by 70%-80 % compared to the
same time last year.
Mining companies - Access to South Africa and India was severely limited, as more mines
were forced to shut down production, continuing the decline by 54%-100 %, with sales based
on existing stock.
Courier companies - Diamond shipping declined by 50%-70 %.
Mining companies - Complete shutdown of production in many mines across the globe, with
sales decreasing by 50%-97 %, allowing clients to defer this quarter’s purchases to later in the
year. July is showing a slow return to production in Russia.
Based on the gradual renewal of business transactions and flights, the FCRF hopes to publish
the next index in Q3 2020.

Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet
Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
*  Company:
*  Name:
*  Mobile:
*  Email:
Subscribe for DiamondWorld weekly Newsletter
Search News by City
Recent Issue
News in Pictures
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 32047
Diamond World Expert Hour with Evgeny Agureev, Deputy CEO, ALROSA
Views: 9550
GJEPC Chairman Interview
Views: 28146
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 39389
Promo for IJ Awards 2012 at NDTV Profit
Views: 57081
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 68574
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 21897
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 50947
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 53141
DW News App
Member of:
Supporter of: