The Kimberley Process has just released the 2017 global rough diamond production and trade data. It shows that 2017 global rough diamond production volume and value has reached new peaks; global import and export of rough diamonds are active; due to the increased proportion of small and low quality rough diamonds in the overall trade, the increase in global trade value is lower than the increase in trade volume; the 2017 rough diamond import & export volume and value of China (including Hong Kong SAR) ranks sixth in the world, with the value of trade rose 40% to $4.8 billion, approaching the peak value of 2013-2014. (Know more: “Analysis of 2017 Diamond Market and Future Trends”, Global Diamond Industry in 2017: Steady Upstream Market, Struggling Midstream Market, Recovery Downstream Market)
I.2017 global rough diamond production hits new high
Global rough diamond production value in 2017 grew by 29.4% to $15.87 billion, reaching the highest value for a single year of production since the Kimberley Process began gathering statistics in 2004. (Figure 1)
Rough diamond production decreased since the 2008 global financial crisis and has maintained an annual production level of 120-130 million carats since 2009. The volume of diamond output in 2017 expanded by 19.4% to 151 million carats, creating the highest peak in nine years. (Figure 2)
Russia still performed as the world's largest producer of rough diamonds, increasing its output by 6% to $42.61 million carats, accounting for 28% of the world. The main drivers of the increase in 2017 global production was Canada. With two new mines (Gahcho Kué and Renard) began commercial production, Canada’s production volume surged by 78% to 23.23 million carats, overtaking Botswana as the second producer in the world, accounting for 15%. Botswana rose by 12% to 22.96 million carats in the production volume of rough diamond. (Figure 3, 4)
Among the top 10 rough diamond producers in 2017, except for Lesotho and Australia, the output value of other countries have risen, resulting in a 29.4% increase of global production value. Among them, Russia’s output value in 2017 increased by 15% to $4.1 billion, accounted for 26% of the world. In addition, Botswana’s output value rose by 17% to $3.3 billion, accounted for 21% of the world. South Africa’s production value skyrocketed by 147% to $3.1 billion, making it the third highest worldwide in 2017. (Figure 5, 6)
In 2017, the average price of global rough diamond production increased by 8.4% to $105 per carat. Except Russia, Botswana, South Africa and Zimbabwe, the average price of rest of 2017 top ten producer in terms of value were dropped. South Africa’s average price grew by 113% to $319 per carat. However, the average price of rough diamond produced in Lesotho plummeted by 250%. (Figure 7)
II.The global rough diamond trade is active in 2017
In 2017, rough diamond inventories of the upstream were transferred to the midstream. Global rough diamond trade volume increased by 23% to 944 million carats, with total import increased by 28.2% to 490 million carats and global export rose by 18.3% to 454 million carats. Due to the increased proportion of small and low quality rough diamonds in the overall trade, import and export trade value increased slightly by 2.6%. The global import value reached $49.8 billion and the export value reached $49.9 billion . (Figure 8, 9)
The European Union (EU), India, United Arab Emirates (UAE), Russia, Botswana, China, Canada, and Israel rank among the top eight in the global import and export of rough diamonds. The total import and export volume of the eight countries accounted for 91% of the global total and the value accounted for 88% of the world. (Figure 10, 11)
In 2017, the top five countries in terms of rough diamond trade volume showed year-on-year growth. The annual increase of EU, India, UAE, Russia and Botswana was 34%, 28%, 26%, 9% and 11% respectively. (Figure 12)
In 2017, among the top five countries in terms of global rough diamond trade value, India's import and export trade value increased by 14%, and the UAE increased by 12%. The import and export trade value of the remaining three countries declined. (Figure 13)
The import and export of rough diamonds in various countries in 2017 also reflects their industries. The EU - mainly Belgium, is the most important rough diamond trade center in the world. In 2017, the value of rough diamonds imported into EU was equivalent to export. The leading importer of rough diamond continued to be India, which is a major rough diamond cutting center in the world. In terms of value, about 90% of its imported rough diamonds are cut into polished diamonds domestically. The UAE is also an significant rough diamond trading hub, with a large amount of rough diamonds produced in Africa traded in Dubai. In 2017, the export value of rough diamonds in UAE was higher than its import. Botswana is an important producer and exporter of rough diamonds. Israel's influence in the global rough diamond trade and processing has gradually weakened, mainly focusing on the processing of medium and high quality rough diamonds, and in 2017 its import value of rough diamonds value is slightly higher than the export. (Figure 14)
In terms of import value, India, the EU, the UAE, Israel and Botswana accounted for 87% worldwide. Among them, India is the most important importer of rough diamonds, as its import increased by 31% to $19 billion, backed by a volume increase of 40% to 195 million carats. India in 2017 was responsible for 40% of global rough diamond import by volume and 38% by value. The EU ranked second in the rough diamond import, with its 2017 import value reached $12.2 billion, and the import volume reached 160 million carats. The EU represented 33% of all rough imports by volume and 24% by value. The UAE following in the third place, importing 86.9 million carats and $6.9 billion, good for 18% of all imports in terms of volume and 14% in terms of value. (Figure 15, 16)
In terms of export, the EU and the UAE are still the major exporters of rough diamonds. The EU, UAE, Botswana, Russia and Israel accounted for 71% of global rough diamond export value. EU's export value was $12.68 billion, accounting for 25% of the world; while the export volume was 129 million carats, accounting for 28% of the world. UAE export value amounted to $9.76 billion, with an export volume of 88.38 million carats, both accounting for 20% of the global total. (Figure 17, 18)
China is one of the major rough diamond trade center in the world. In 2017, both the volume and value of rough diamond import and export ranked sixth in the world. China's rough diamond trade volume increased slightly by 8% to 26.5 million carats in 2017. The trade value rose 40% to $4.8 billion, approaching the trade value during the peak period of 2013-2014. (Figure 19)
In 2017, China's rough diamond import volume increased by 8% to 14.7 million carats, and imports value increased by 9% to $1.96 billion. Exports volume increased by 8% to 11.79 million carats, and exports value surged by 75% to $2.84 billion. (Figure 20, 21)
Analyzed by Guangzhou Diamond Exchange
Based on date released by Kimberley Process
Guided by the Inspection and Quarantine Clearance Department,
the General Administration of Customs, PRC
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