[matters]
Bain consulting released the 2022 global diamond industry report.
[comment]
The global diamond industry recovered strongly in 2021. According to Bain consulting data, in 2021, the revenue scale of the upstream mineral market / midstream cutting and grinding Market / downstream retail market of the global diamond industry increased by 62% / 55% / 29% year-on-year respectively, comprehensively surpassing the pre epidemic level and increasing by 12% / 16% / 11% year-on-year in 2019.
Upstream: short supply drives inventory consumption and price rise. In 2021, the global gross diamond mining volume is expected to be 116 million carats, with a year-on-year increase of + 1.5% / + 4.5% respectively in 19 / 20 years. The main production is still concentrated in traditional monopoly manufacturers erosa (accounting for 28%) and De Beers (accounting for 28%). Based on the scarcity of natural diamond mineral resources and the stable monopoly pattern, it is expected that the overall mining volume will be relatively stable in the future. In 2021, the global demand for diamonds is strong, and the global sales of rough diamonds are expected to reach 137 million carats, a year-on-year increase of + 26.9%. The shortage of supply drives the decline of rough diamond inventory and the increase of price. The global rough diamond inventory is expected to be 29 million carats in 2021, a year-on-year – 39.6%, the lowest level since 2013; In 2021, the price index of rough diamond / bare diamond was + 21% / + 9% year-on-year respectively (in 2020, it was – 11% / – 5% year-on-year respectively).
Midstream: India, the main processing country, saw a high increase in imports. In 2021, the global gross diamond procurement amounted to US $18 billion, with a year-on-year increase of + 38.5% / 50.0% respectively in 19 / 20 years. Among them, India accounts for more than 90% of the cutting and processing market share in the middle reaches of the world, the purchase volume of rough diamonds is + 94% year-on-year, surpassing the pre epidemic level, the export volume of bare diamonds is + 15% year-on-year, and the net import is + 49% year-on-year; China’s purchase volume of rough diamonds increased by + 43% year-on-year.
Downstream: the retail end exceeds the pre epidemic level. Global jewelry retail sales are expected to reach US $84 billion in 2021, with a year-on-year increase of + 12.0% / + 29.2% respectively in 19 / 20 years, 51% in the United States and 10% in China, ranking second. The growth rate of diamond and jewelry retail sales in the United States / China / Europe / Japan / India, the main consumer countries, in the past 21 years was 38% / 19% / 18% / 15% / 16% respectively, and the diamond terminal consumption of various countries recovered significantly.
The global diamond market is booming, and China’s jewelry retail and cultivation diamond sector is expected to benefit. 1) The global diamond market is booming in supply and demand. As the second largest diamond consumer, China’s diamond retailers have improved their outlook. It is suggested to pay attention to Chow Tai Fook, Chow Tai Seng Jewellery Company Limited(002867) , Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) , Guangdong Chj Industry Co.Ltd(002345) , etc. 2) The popularity of cultivating diamond market continues to increase, and manufacturers actively expand production. They are optimistic about cultivating diamond rough diamond manufacturers Henan Liliang Diamond Co.Ltd(301071) with technological breakthroughs and large output growth. It is suggested to pay attention to HTHP cultivating diamond leading manufacturers North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , cultivating diamond equipment manufacturers Sinomach Precision Industry Co.Ltd(002046) , CVD cultivating diamond manufacturers Sf Diamond Co.Ltd(300179) , Beijing Worldia Diamond Tools Co.Ltd(688028) , etc.
[risk tips]
Global epidemic recurrence; Industry competition intensifies
