The diamond industry has been eagerly awaiting a recovery in China, but the rebound has yet to materialize.
After three years of strict zero-Covid policies, which finally ended in December 2022, China’s anticipated recovery in demand for diamonds has been disappointing. In fact, demand among China’s 1.4 billion people dropped by as much as 50% last year, according to analyst Paul Zimnisky.
For over a decade, China was the world’s second-largest diamond buyer, trailing only the United States. However, it has now been overtaken by India.
The impact of this decline is evident in nearly every company report and news story about the diamond industry, where China is frequently cited as a primary cause.
Earlier this month, De Beers reduced its production guidance for 2025 and stated it expected to lower its book value due to weak demand, particularly in China.
Jewelry giant Chow Tai Fook, which operates 7,500 stores across mainland China, saw retail sales plunge by 21% in the three months leading up to September 30, 2024.
Luk Fook, with over 3,400 outlets, reported a 35% drop in same-store sales of diamond jewelry in the last quarter of 2024.
Tse Sui Luen Jewellery, which posted a $48 million loss in September, is expecting an even larger loss when it publishes its annual results in March, blaming weak demand from Mainland China.
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