Coronavirus wreaks havoc on diamond market

UNITED STATES (OBSERVATORY NEWS) — The interruption of sales in China, where the new coronavirus is rife, has significantly slowed demand in the diamond market. Its players are beginning to review their strategy on the Asian markets.

The coronavirus epidemic in China has had an impact on the diamond market where demand has slowed down, announces.

The slowdown is caused by the cessation of sales in China, where this protective measure was taken in the interest of public health and safety.

Market players are forced to change their strategy on the Asian markets. In India alone, 35-40% of exports of its precious stones and jewelry are usually destined for mainland China and Hong Kong.

Asian markets strategy revised

The CEO of the Russian diamond mining group Alrosa, Sergei Ivanov, said during International Diamond Week in Israel that the impact of the coronavirus was already “quite heavy”.

“We understand that our clients are very careful about what is going on, and they are also evaluating their strategies in the Asian market for the second quarter,” he said.

The diamond market already experienced a notable slowdown at the end of 2019, linked to the drop in demand in the United States and China, as well as the surpluses of jewelry stored by retailers.

Coronavirus epidemic

On Thursday, February 13, the Hubei Province Health Commission released very serious figures on the epidemic, with 242 new deaths and 14,840 new people infected in 24 hours. In total, this epidemic outbreak has killed 1,367 people in mainland China, where the number of infected people now stands at 59,805 according to official figures from Beijing.

In France, the Ministry of Health announced the healing of two of the 11 infected patients in the country. These are the first two cases recorded on French soil, both from Wuhan, the cradle of the epidemic.


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