AXIOS stated that the first phase investment for the new factory is 245 million euros, of which 120 million is provided by the Spanish government. However, as cultivating diamond rough growth is a 'capital intensive' industry, capital, operational efficiency, and scale are necessary conditions for survival. Diamond Foundry also needs to raise 600 million euros (approximately 675 million US dollars) to complete the construction of a new factory.
Rob Bates (JCK editor in chief) quickly consulted one of the company's leaders, Mona Akhavi, who stated that "this is false news" and "I feel a conspiracy against us (the company)".
In March 2021, Diamond Foundry once said that it had raised a total of 315 million dollars, of which 200 million came from Fidelity International.
International Diamond Industry Dynamics
The retail situation of jewelry has always been poor, and the industry sentiment is still relatively low. The inventory of traders and processing factories is depreciating.
Midstream Indian factories maintain low production. Wholesalers see that there are still trading opportunities for some cheap stones, but given the reality of market decline, they are very cautious about purchasing.
De Beers cut the price of semi-finished products with 0.75 carats or more and low quality by 5% -15% at the July sales conference. The industry is worried that this move will have a Ripple effect on the price of bare diamonds.
High end products continue to support market demand, including large grain diamonds and high-quality shaped diamonds.
Two relatively positive news: inflation in the United States fell to 3% in June, and sales at Chow Tai Fook increased by 29% year-on-year in the first quarter (as of June 30).
In short, the diamond industry is still undergoing severe tests.
Diamond price changes
According to the data provided by Rapport, the price changes of diamonds as of July 14th were compiled. The RAPI price index of 0.30 carats decreased by 0.24% this week, slightly less than last week. However, the three consecutive weeks of price reductions still reflect the weakness of local markets.
