Surat's Lab-Grown Diamond Industry Faces Pricing Turmoil
The lab-grown diamond sector in Surat, Gujarat, is encountering difficulties following De Beers' significant price reduction for its Lightbox brand. De Beers, a prominent player in the global diamond industry, has cut prices of its IJ color lab-grown diamonds by 37.5%, now offering them at $500 per carat.
This move exacerbates Surat's existing oversupply crisis, where many manufacturers had shifted focus to lab-grown diamonds due to sluggish natural diamond trade. With De Beers' price cut, local producers face intensified competition and potential profit margins reduction.
Babubhai Vaghani, president of the Lab-grown Diamond Association, noted that over the past two years, about half of the units engaged in natural diamond cutting and polishing had partly transitioned to lab-grown diamonds. This shift has already slowed down the industry and led to price declines. The full impact of De Beers' decision is yet to be seen, but it's anticipated to be significant.
Surat, a major contributor to India's gems and jewelry exports, has been hit by the fallout of the 2022 Russia-Ukraine conflict. The diamond industry, heavily reliant on Russian rough stones, faces additional challenges due to tightened US import restrictions on polished diamonds sourced from Russia.
Despite these challenges, industry insiders are optimistic about potential solutions. An upcoming diamond exhibition in Las Vegas, organized by the Natural Diamond Council, is expected to provide new insights and directions for the industry.
