Surat: In very few years, due to India’s direct competition with China in the production of synthetic or Lab Grown Diamond rough diamonds, the demand for Lab Grown Diamonds has decreased due to the recession in America and Europe. The price of labgrown rough in Surat and Mumbai has collapsed by 35 to 50% quality wise creating a cycle of breaking, creating a market turmoil.
- Surat-Mumbai labgrown rough diamond prices fall 30-50% as China slashes prices
- There is over production in Surat-Mumbai and there is no demand due to recession in America, but investors will be able to earn: Babubhai Vaghani
Due to the current economic recession in the world market, the demand for Labgrown Diamonds has decreased drastically. Where does the demand for labradorite diamonds come from when there is no demand for natural diamonds? Surat and Mumbai have become hubs in the production of Labgrown Diamonds. 10 large companies and around 300 small-medium scale companies are producing rough in Surat. Exports also grew at a rocket pace in the past years. Even though the demand is low, rough diamonds have to be produced through machinery. If production is stopped, the cost of machinery and man power also increases.
Surat-Mumbai companies have developed machinery worth crores. Imports of labdrone diamonds fell by 45 percent last month. Imports of natural diamonds fell by 25 percent. Until the demand for natural diamonds increases, the demand for labgrown diamonds will not increase. Labgrown diamonds are also abundant in India. Small producers and traders are suffering. Exports of lab-grown diamonds have increased by 78 percent in the last 4 months due to demand for lab-grown artificial i.e. lab-grown CVD and HPHT diamonds and diamond jewelery in Surat, India.
During April to July, the export of labgrown diamonds increased to 4842 crores. The certification of Labgrown Diamond is also recognized in the world by well-known foreign companies doing certification and grading. The demand for synthetic diamonds is increasing against the trade of natural diamonds. Labgrown diamonds can revolutionize the diamond industry. Growth of quality synthetic diamonds by chemical vapor deposition in the laboratory has begun in earnest in Surat-Mumbai.
No need to panic: Babubhai Vaghani, President, Surat Labgrown Diamond Manufactures Assoc.
Babubhai Vaghani, president of Surat Labgrown Diamond Manufacturers Association, said that prices of different qualities of labgrown rough in Surat have collapsed by 35% to 50% as a result of the fall in prices of Chinese labgrown rough. But there is nothing to panic about. There was an over production of Labgrown Rough in Surat. And the price of rough was also higher. In this situation, the market of LabGron will be stable. Investors or jewelers who buy at reduced prices will get long term gain. After two years of Corona, the prices were raised only after the demand in America and European countries.
Labgrown Diamonds Burst, 600% Growth in Last 5 Years
In the last 5 years there has been a growth of 600% in the trade of Labgrown Diamonds. In the year 2017-18 where there was an export of 1404 crores. It reached 8503 crores in 2021-22. Production of Labgrown Diamonds is increasing rapidly with 2500 modern machinery in Surat. In Surat, 10 major diamond companies and 300 units of MSME category are producing 2 lakh carats of Labgrown annually.