【China】Why China is Being Blamed for the Diamond Price Drop

As diamond prices continue to fall, China’s weak domestic demand and declining marriage rates are being cited as major factors.
According to the South China Morning Post (SCMP) on the 23rd, the Zimnisky rough diamond index has been on a downward trend since hitting an all-time high in 2022.
Bank of America Global Research analyzed that wholesale diamond prices have fallen by about 40% over the past two years.

The industry views China as the primary cause of the price decline.
China, once the world’s second-largest diamond market after the United States, has seen a sharp drop in diamond demand due to demographic changes, economic slowdown, and employment difficulties leading to a steep decline in marriage registrations, which has impacted global prices.

China’s annual marriage registrations reached 13.46 million in 2013 but have declined for nine consecutive years since 2014, recording 6.83 million in 2022, breaking below the ‘7 million couples’ mark. Last year, the number rebounded to 7.68 million as marriages postponed during the COVID-19 period surged, but this year it is expected to fall again to below 6.6 million, less than half of the 2013 figure.

The mass production of lab-grown diamonds (LGDs) in China is also fueling the price decline.
Lab-grown diamonds accounted for only 1% of global diamond jewelry demand in 2015 but now hold 15-20%. According to the global market research firm Research and Markets, the global lab-grown diamond market size reached $15.3 billion last year.
China is considered one of the largest producers of lab-grown diamonds, alongside the United States and India.

CGTN, the English-language channel under China Central Television (CCTV), reported in March that Henan Province in China has become the “global production hub” for lab-grown diamonds, stating that one out of every two lab-grown diamonds produced worldwide is made in this region.