【Beijing, Chi】’Made in China’ Lab-Grown Diamonds Aim for the Global Market

(Beijing = Yonhap News) Correspondent Kim Yoon-gu = China, long a major consumer of natural diamonds, is now eyeing the global market as a supplier of lab-grown diamonds, state-run Xinhua News Agency reported on the 7th.
China has produced nearly 10 billion carats of diamonds annually for about a decade, but most were for industrial uses like abrasives.
However, as competition in the industrial diamond sector intensifies and technology advances, companies clustered in Henan Province in central China are shifting their focus from abrasives to gemstones.
A specialized company called SinoCrystal produces 2 to 3 million carats of diamonds per year, of which more than half are gem-quality.

The company expanded into the gem-quality diamond market in 2014. This was due to fierce competition in the industrial diamond market and the expectation of a ‘blue ocean’ in the consumer market.

He predicted that even if only a portion of China’s production is upgraded to gem-quality standards, it would have a massive impact on the global supply.
Theoretically, lab-grown diamonds can be produced indefinitely. This could upend the diamond market, which relies on the perception of relative scarcity.

The giant company De Beers, which popularized the phrase ‘A Diamond is Forever,’ has fueled the expansion of the lab-grown diamond market.
The company, which previously showed no interest in the lab-grown sector, shifted direction in 2018 by starting to sell lab-grown diamonds under its ‘Lightbox Jewelry’ brand.
However, De Beers says natural and lab-grown diamonds should be seen as separate products. The intention is to protect its original business while capturing another growing market.
What brightens the prospects for lab-grown diamonds is the ability to improve quality at increasingly lower costs.
Lab-grown diamonds have the same chemical and physical properties as diamonds mined from the earth. Now, it is impossible to distinguish between natural and lab-grown products with the naked eye.
An expert can tell the difference with equipment.
But there is a question of how meaningful this difference is.
The U.S. Federal Trade Commission (FTC) removed the word ‘natural’ from its definition of diamonds last year.

Zimnisky forecast that the lab-grown diamond market would grow 22% annually, expanding from $1.9 billion to $5.2 billion (about 5.8 trillion won) by 2023.

He said the quality of Chinese lab-grown diamonds is improving rapidly, with some products comparable to De Beers’ Lightbox.