Why India reduced the import of diamonds
India – the largest diamond guard – again reduced the import of raw materials after relatively active purchases in March and April. ALROSA is associated with a decrease in fears of border companies due to trade duties. And analysts talk about the desire to reduce reserves before the high season in the fall, which can stimulate price increases.
India, which accounts for almost 90% of the global cutting of diamonds, in May reduced the import of raw stones by 12.3% a year by the year, to 9.1 million carats. It follows From preliminary data Council for promoting the export of precious stones and jewelry of India (Gjepc). In monetary terms, imports decreased by 11.5% by May 2024, to $ 1.062 billion. Relatively April, the indicators decreased by 15.4% and 12.9%, respectively.
According to the results of May, the supply of diamonds from the country was also shown negative dynamics. According to GJEPC, last month India exported 1.2 million carats worth $ 949.7 million. This is 22.5% and 35.5%, respectively, less than a year earlier, and 8% and 16.7% than in April.
In April, India increased the import of diamonds, and in March there was an activation of procurement relative to previous months (See “Kommersant” from April 15).
In ALROSOS, it is noted that the volumes of imports decreased by April 2025 mainly due to small stones.
As indicated in the company, this is also seen by the growth of average prices in May – up to $ 130 per carat, the level that was the last year ago. Another reason is the tariff “nervousness” of the borderline companies, which, fearing restrictions, actively purchased stones in March and April. In May, fears decreased, continue in Alrosa. Thus, the company is considered in the company, a decrease in imports to the average meanings indicates an improvement in the views of the prospects of conducting a border business.
Boris Krasnozhenov, head of the Analyst Securities Market Department, notes that, against the backdrop of a seasonal decrease in the activity of jewelry consumers with diamonds, Indian cutters are trying not to increase the reserves of diamond and diamond raw materials and work “from the wheels”. According to him, traditionally the “calm” period in the cut and the consumption of jewelry will last until the end of summer.
“In September, against the backdrop of the seasonal growth of retail activity, low reserves in the cutting, according to our estimates, will be an additional driver of rising prices for diamonds,” the expert says.
Ahmed Aliyev, leading T-investment analyst, however, believes that the market is still in a weak state. “The US tariffs are strengthening uncertainty among all participants, against which the pure export of diamonds in May from India has been at a minimum since December last year,” he says. According to Mr. Aliyev, a positive dynamics in the summer months of this year may be if the United States is reset or significantly reduce duties on Indian stones.
Pavel Marinichev, head of ALROSA, In an interview with the Yakutia 24 television channel in April:
“We see that recently the first timid attempts to restore the market have been observed.”
The managing director of the NCR rating agency Dmitry Orekhov calls the main factors of negative dynamics in the diamond-brilliant market a decrease in demand in China, the USA and the EU, pressure from synthetic diamonds, oversights of supply, as well as sanctions against Russian stones. A possible additional incentive for the industry in such conditions could be administrative measures to limit the turnover of synthetic diamonds, reasoned by the executive director of the Russian jewelers, Vladimir Zboykov. But, according to him, to achieve the effect, they should be ubiquitous, at least in all main countries – supply of diamond products, primarily in the USA, China and the UAE.
The scenario of market restoration – demand and prices for diamonds – is possible no earlier than two years, Dmitry Orekhov believes. According to him, this is possible if the offer from producing companies and stocks from Indian cutters is reduced. In the position of mining companies, the main risk consists of, warns Boris Krasnozhenov. According to him, the supply of financial strength among diamond miners is lower than historical values and they can go to the game to reduce prices for the sake of ensuring the flow of funds to maintain business. Bloomberg, citing sources, reported in May 2025 that De Beers in recent months sold diamond customers with a discount of 10% to 20%.
