Global demand for polished diamonds to be affected

Political unrest and continuing protests in Hong Kong against an extradition bill have cast a dark shadow over the prospects of participation of Indian diamantaires in Hong Kong Gems and Jewellery Show to be held in September.

Industry experts said Hong Kong Gems and Jewellery show happens to be the world’s largest event after JCK Las Vegas Jewellery Show and that it is a gateway to consumer demand in the world.

Every year, diamantaires from Surat and Mumbai participate in the Hong Kong Gems and Jewellery Show. It is after this event that the demand for polished diamonds and diamondjewellery picks up in the world ahead of Christmas. Industry sources said Hong Kong Jewellery Manufacturers’ Association (HKJMA) is asking the organizers of the September show for 25% discount for its members, citing difficult market conditions due to trade war and social unrest in the special administrative region of China.

Many overseas exhibitors and buyers are likely to skip the show due to government warnings about visiting Hong Kong, the HKJMA said this week. Domestic companies have also expressed ‘anxiety’ about the event, with some stating they might not attend it in order to minimize losses, Wings Cheung, the association’s general manager, wrote in a note to members.

Diamond and jewellery demand softened in Hong Kong even before the protests started because of trade dispute between the USA and China. US President Donald Trump’s recent addition of a 10% tariff on many Chinese goods, starting September 1, has worsened the situation.

Diamond industry analyst, Aniruddha Lidbide, told TOI, “A majority of diamantaires from Surat and Mumbai are seriously thinking whether to participate in Hong Kong event or not due to the ongoing protests there. If the show fails, then the demand for diamonds is not going to improve in the world. Miss Jewellery Hong Kong 2019 pageant to be held in November has also been cancelled because of the protests.”

A De Beers sightholder company chairman said, “Many buyers will skip the Hong Kong show this time due to unrest there. We are not sure about participating in the event this time.”

Courtesy - Times of India