The interruption of sales in China, where the new coronavirus is rampant, has significantly slowed demand in the diamond market. Its players are starting to review their strategy on the Asian markets.
The coronavirus outbreak in China has spilled over into the diamond market where demand has slowed.
The slowdown is caused by the halt in sales in China where this protective measure was taken in the interest of public health and safety.
Market players are being forced to change their strategy in the Asian markets. As far as India alone is concerned, 35-40% of its gemstone and jewellery exports are usually destined for mainland China and Hong Kong.
Revised strategy on Asian markets
The CEO of Russian diamond mining group Alrosa, Sergei Ivanov, told International Diamond Week in Israel that the impact of the coronavirus was already “quite severe”.
“We understand that our clients are very cautious about what is happening, and they are also evaluating their strategies in the Asian market for the second quarter,”
The diamond market has already experienced a significant slowdown in late 2019, linked to declining demand in the United States and China, as well as surpluses of jewellery stockpiled by retailers.
These are the current numbers about the coronavirus at the time of publication of this article.
China: 68.500 (+ 8.969 suspicious cases)
Outside mainland China: 768 in 28 countries
Deaths in China: 1.665
Deaths outside China: 4
Europe: 45 infected patients
-Belgium: 1 (129 tested)
Hong Kong International Diamond, Gem & Pearl Show postponed due to coronavirus
Earlier, organizers of two upcoming jewelry trade shows in Hong Kong had already decided to postpone the events as the coronavirus continues to spread beyond mainland China.
The Hong Kong International Diamond, Gem & Pearl Show, which was due to take place from March 2 to 6, and the Hong Kong International Jewellery Show, scheduled for March 4 to 8, will now run from May 18 to 21. They will happen concurrently at the AsiaWorld-Expo, instead of at two separate venues, the Hong Kong Trade Development Council (HKTDC) announced on its website Tuesday.
“The safety of exhibitors and buyers has always been a priority for the HKTDC,” the notice read. The decision was in line with the Hong Kong government’s measures against the spread of the coronavirus and followed consultations with representatives of the jewelry industry, it continued.