Didn't you realize the importance of midstream processing in the industrial chain?

Chinese practitioners are very hardworking, so to this day, midstream trade is thriving, and downstream retail has also ranked second in the world. However, at the same time, diamond cutting and grinding processing has always been a weakness, leading us to always refer to "international quotations".

Are we in the industry not aware of the importance of midstream processing in the industry chain? Of course not, but the scarcity of cutting and grinding talents and high labor costs have all hindered the development of this sector.

In contrast, India seized the opportunity and developed itself into a major diamond processing country with its cheap labor advantage, choking the "throat" of the global diamond industry chain and becoming a core country that affects the supply and demand of rough and bare diamonds. The import and export data released by GJEPC every month often has a significant impact on industry sentiment.

Subsequently, the cultivation of diamonds emerged.

In 2018, as De Beers launched the Lightbox brand and the FTC (Federal Trade Commission) updated its definition of diamonds, nurturing diamonds began to gain widespread recognition in downstream markets. So India quickly discovered new opportunities: developing from the middle reaches (trade and grinding) to the upstream (rough production).

They have developed rapidly, and with the support of the government, they have almost made efforts nationwide to expand the production scale of CVD, rapidly forming several enterprises with over a thousand devices. Global production of 30%, which was India's previously public "small target".

This process is actually very cruel, and the survival of the fittest at the level of producers and traders has never stopped. Some people say that China's diamond cultivation industry is very popular, but in fact, through weekly international wholesale price research in the past year, I found that they seem to be more popular.

However, even if the entire industry is so booming, India has never stopped developing and nurturing diamond production. Why can you be so confident? Because they undertake over 90% of the global diamond cutting and grinding processing.

In other words, Indians believe that with the scale of 800000 cutting and grinding workers, they can catch the raw materials produced upstream.

Let's take a look back in China. With a population of around 8000 to 15000, can we ensure that we can sustain our upstream rough production? Almost impossible. So most of our blanks are sent to India, where they are cut and ground before being sold worldwide.

It may seem like we are the 'resource side', but in reality:

1) We are not the only resource provider.

2) India is the buyer.

When this industry was just developing, the rough trade was still a seller's market, and the upstream seemed like a blue ocean, causing joy throughout the country. But later on? Starting from mid-2022, the rough market has shifted from a seller's market to a buyer's market. The reason is simple: there is too much upstream production, and downstream demand has not been fully opened up except for the United States, so the midstream has become more selective when purchasing raw materials.

Although this is the pain that an emerging industry will experience in the early stages of development, those who enter understand that this pain is very profound.