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THE DIAMOND TRADE

AS THE HARD DATA IS ACCUMULATED,
STRENGTH OF MARKET IN 2021 IS BEING REVEALED

 

With the figures coming in fast and furious, it now becoming patently obvious that, despite the ravages of a global pandemic, 2021 will be remembered as on the most successful years in recent memory for the diamond and jewelry sectors. This is apparent across the board, or as it described in the industry, from mine to market.

Russian diamond producer Alrosa reported that its revenues in 2021 surged by 49 percent to $4.17 billion, of which $3.98 billion was derived from rough diamonds and $192 million from sales of polished diamond. This the highest amount reported since 2018.

According to the Russian diamond producer, the price index rose by 33 percent between December 2020 and December 2021, exceeding the level of late 2018 by 6 percent. Revenue per carat equaled $128 per carat, up 17 percent year on year, both as a result of the higher price index, but also because of changes in the sales mix.

Output of rough diamonds at Alrosa mines totaled 32.4 million carats, 8 percent more than during the previous year, primarily due to higher volumes from the V. Munskoye and Nyurba Division deposits.

Alrosa’s primary rough in the rough diamond sector, De Beers, has yet to publish its comprehensive results, but the tally from its ten sales cycles during 2021 reveals that it brought in $4.82 billion, 72.7 percent more than the $2.79 billion reported for COVID-stricken 2020 and 19.3 percent more than the $4.04 billion that was registered in 2019.

Indian exports of cut and polished diamonds rose by 23 percent to $18 billion in 2021, as compared to $14.7 million for the same period in 2019, before the onset of the COVID pandemic.

In the midstream of the industry, the world’s largest diamond producing country, India, reported that gem and jewelry exports during the three quarters ending December 31 were up 5.8 percent to $29.1 billion.

“The holiday bounce has managed to offset part of the post-Diwali export slump when factories normally take a short break,” Gem & Jewellery Export Promotion Council Chairman Colin Shah told the local media. “Holiday and festive demand was robust in important trading centers such as the U.S., Hong Kong, Thailand, and Israel,”.

India closes its financial year out at the end of the first quarter, and according to Shah “we have every reason to believe that this momentum will carry through the end of the 2022 financial year, bringing us closer to the set target of $41.67 billion in exports.”

During the April-December 2021 period, Indian exports of cut and polished diamonds rose by 23 percent to $18 billion as compared to $14.7 million for the same period in 2019. 2020 was not considered relevant for comparison, because the impact of the COVID lockdown and the moratorium on rough diamond exports that had been instituted by Indian companies during the year.

The Israeli government earlier reported the country’s net polished diamond exports – meaning exports of good after returned materials have been accounted for – totaled $3.65 billion. This was an increase of 54 percent on the amount reported in 2020, and 7.5 percent compared to 2019.

SIGNET’S BEST EVER HOLIDAY SEASON

At the retail end of the distribution, the data being reported is also positive. Signet Jewelers, the United States largest jewelry chain, whose future was being questioned only abut two years ago, reported that its 2021 holiday season was the best it had ever experienced, with sales up 30 percent year on year to $2.4 billion. Same-store sales rose by 25 percent when compared to 2020 and 35 percent when compared to 2019.

The jewelry chain, which is publicly traded, increased its revenue forecast for the fiscal year running through the end of January 2022 to $7.78 billion, which is 49 percent more than during the previous fiscal year which of course was fundamentally affected by the COVID-19 pandemic, and 27 percent above $6.1 billion reported in 2019.

Signet’s CEO, GINA Drosos, attributes the turnaround to the company’s growing ability to harness technological change.

The 2021 holiday season was Signet’s best ever, with sales up 30 percent to $2.4 billion. 

“Our company leads the industry in innovation. That’s why we are the category leader, not just by virtue of our size, but by virtue of being the best: having the best people, the best products and the best capabilities,” she said.

Signet’s e-commerce sales in the U.S. increased by 18 percent in 2021 over 2020 and were 85 percent higher than they were two years ago.

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