Morning Bites (part 1)

💎India's midstream diamond manufacturers have reported a business slump in Surat, amid unfavourable geopolitical conditions that are affecting demand from the US and Europe, and a recent spike in China's Covid cases. According to Bhavesh Tank, a vice-president of the Diamond Workers' Union, many of India's employees in cut-and-polish segment have suffered a 20% wage cut, while ~100,000 workers have lost their jobs. The vice-president also mentioned a large diamond unit's head in Surat, whose business is down 40% in terms of volume. In our view, the slowdown in Surat manufacturing (~90% of global polished diamonds output), is a moderately negative factor for rough stones demand and prices in the short term. Overall, the news might reflect the recent YoY decrease in India's polished diamonds net exports, supporting our view that the sector is likely to stay under stress in the near future

#diamonds
https://metals-wire.com/sector/Diamonds