With sign of some improvement in the overall domestic demand, imports of major raw materials for gem and jewllery industry including gold bar and rough diamond may increase over the next two months on fresh but cautious buying by importers amid increase in supply of rough diamond. Trade sources expect improvement in supply of gold bar and rough diamond globally.
The country imported gold bars worth $342.17 million in May 2009, almost double from $125.15 million in April 2009. Similarly, imports of rough diamonds increased to 90.61 lakh carats valued at $589.15 million in May from 82.89 lakh carats valued at $457.98 million in April 2009.
?Diamond Trading Company (DTC) has increased supply of rough diamonds in its June sight. It is estimated to have been the largest so far this year, at $425 million,? a leading sight holder said.
?One can see some buying interest for roughs from Indian importers as DTC prices are almost in line with open market,? a local dealer said.
In fact, overall total imports of rough diamonds fell by 31% during the last two months but gold bar imports improved by 32% in April-May period over same months of previous year.
?There may be some cautious buying among major players as overall demand at the retail level has not improved yet. They may buy some goods for their basic requirement. So far, import was low,? Rajesh Mehta, MD of Rajesh Exports told FE.
Louise Prior, spokesperson, DTC was ?cautiously optimistic? about its prospects for the coming months, according to Rapaport report. Most participants appeared confident that the higher demand would be maintained through July and August, but would slow thereafter as ALROSA starts selling again and the Diwali season in India ends, he said.