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Who Are the Top Rough Buyers?

And where's it all going?

Jul 26, 2018 9:04 AM   By Avi Krawitz
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In this excerpt from the latest issue of the Rapaport Research Report, we list the 124 companies buying from De Beers, Alrosa, Rio Tinto and Dominion.

RAPAPORT...
Much has been said about the journey a diamond takes from mine to market, particularly as the industry is increasing its provenance claims and tracking goods along the pipeline. While an estimated 80% to 90% of diamonds are cut and polished in India, they’re typically not sent directly from the mining centers to the factories.

Rather, they stop in the trading centers along the way, with a large proportion of goods being sent to both Antwerp and Dubai before reaching Surat for manufacturing.

That marks a notable change in the diamond journey from less than 10 years ago. Back then, for example, De Beers sent its production from its mines in Botswana, South Africa, Namibia and Canada to London for sorting and sales. The goods were then shipped to Antwerp and traded before transportation to the factories, with the average rough diamond changing hands four or five times before being cut and polished, one dealer told Rapaport News.

After De Beers moved its sorting operations and sight location to Gaborone in 2013, the journey changed course, with Botswana emerging as an important rough sales center. At the same time, some traders moved to Dubai due to tax and banking difficulties in Antwerp.

Antwerp still remains the most important rough trading hub, and has maintained its critical mass of rough activity, as noted in the May issue of the Rapaport Research Report. An estimated 84% of all rough passes through Antwerp, with many of the smaller and medium-size miners holding auctions there. But Dubai has emerged as the second largest rough trading center in recent years.

Goods from both centers are largely then passed on to India, with Belgium accounting for some 31% of India’s rough supply in fiscal 2017, and the UAE contributing 26% of the total (see chart below). Approximately one-third of India’s supply was sent directly from the mining centers.


Based on data from India’s Commerce Ministry. 

Russia and Botswana are naturally among the largest sources of rough supply to India and Belgium, given that they’re the location of Alrosa and De Beers sales, respectively.

Who’s buying production?

These trends are evident in the locations of the major buyers of rough diamonds, as presented in the following pages of this report. Below, we list the companies that have long-term contracts or preferential supply agreements with the top miners.

Not all diamond mining companies have the scale of production to provide the consistency of supply that the large manufacturers require for continuity in their operations. Manufacturers also need guarantees to ensure polished supply to their jewelry wholesale and retail clients, who often run programs with specific needs.

Most junior and midsize miners sell via spot auctions or tenders, whereby buyers compete for rough in a bidding process. Only De Beers, Alrosa, Rio Tinto and Dominion Diamond Mines — which account for an estimated 70% of global supply volume — have the scale of production that enables them to guarantee a scheduled, consistent supply of rough to a set group of clients.

Between them, they’re supplying 124 diamond companies, many of which are buying from multiple sources. Among those companies, 41 are headquartered in India, 38 in Belgium, followed by Israel with 15, seven in each of Russia and the US, and six based in Hong Kong. Other locations include South Africa, Namibia and Switzerland. 

De Beers sells an estimated 90% of its production through its long-term contracts with sightholders, with the current contract set to end in March 2019.The remaining 10% is sold at its auctions. The company has 67 global sightholders, 17 in Botswana, six in South Africa, nine in Namibia, one in Canada and three receiving industrial rough supply. Sightholders in southern Africa have to manufacture the majority of their supply in those countries. De Beers also makes available any excess supply – known as ex-plan – to 14 accredited buyers across its various sights.

Alrosa sells about 70% of its production through long-term contracts in its Alrosa Alliance program. It has 55 companies on the program and nine “Other” Alliance members who are candidates to become contracted buyers and can use any Alrosa branding in their own marketing.

Along with the 18 Rio Tinto Select Diamantaires and 26 companies buying from Dominion on a consistent basis, these manufacturers represent the premium buyers of rough on the market. How they buy and trade rough and sell the resulting polished sets the tone of the diamond market, and determines the path along which the diamond takes in its journey along the pipeline.

Company Name Head Office De Beers Alrosa Dominion Rio Tinto
A. Dalumi Diamonds Israel GSS, Botswana      
A.B.T. Diamonds Israel Accredited Buyer (GSS)      
A.C. Diam Belgium   Alrosa Alliance    
Aives (Excel Overseas) India   Alrosa Alliance    
Almod Diamonds USA GSS, Namibia      
Ankit Gems India GSS, Namibia      
Arjav Diamonds Belgium GSS, Botswana Alrosa Alliance    
Arodiam Manufacturing Company Belgium GSS, South Africa      
Arslanian Group Belgium   Alrosa Alliance    
Asian Star Company India GSS Alrosa Alliance Dominion Select Diamantaire
Aspeco Belgium Belgium   Alrosa Alliance    
Blue Gems Belgium   Alrosa Alliance    
Blue Star Diamonds India GSS, Botswana   Dominion  
Brilliant Gems Belgium   Alrosa Alliance    
Brilliant Trading Company (1974) Hong Kong   Alrosa Alliance    
Bronner Trading Company Hong Kong   Alrosa Alliance    
Choron Diamonds Belgium Accredited Buyer (GSS)      
Chow Sang Sang Jewellery Company Hong Kong GSS Alrosa Alliance Other    
Chow Tai Fook Jewellery Company Hong Kong GSS Alrosa Alliance   Select Diamantaire
Classic Diam Belgium     Dominion  
Crossworks Manufacturing Canada GSS, Namibia, Canada      
D Navinchandra Gems Belgium GSS      
Dali Diamond Company Belgium GSS Alrosa Alliance    
DDK Russia   Alrosa Alliance    
De Toledo Diamonds Israel Accredited Buyer (GSS)      
Dharmanandan Diamonds India GSS Alrosa Alliance    
Diacor International South Africa GSS, Botswana, South Africa, Namibia      
Diajewel Belgium   Alrosa Alliance Dominion  
Diamant Impex Belgium GSS      
Diambel Belgium GSS     Select Diamantaire
Diamond India India   Alrosa Alliance    
Diamtrade Belgium     Dominion  
Dianco Belgium GSS Alrosa Alliance   Select Diamantaire
Diapur India   Alrosa Alliance    
Diarough Sourcing Belgium GSS Alrosa Alliance    
Dimexon International Holdings India GSS Alrosa Alliance   Select Diamantaire
DYS Diamond Manufacturers Namibia Namibia      
Eloquence Corporation USA GSS Industrial      
EPL Diamond Russia   Alrosa Alliance    
Espeka Belgium   Alrosa Alliance    
Eurostar Diamonds Traders Belgium GSS, Botswana      
EZ Diamonds Israel GSS      
Finestar Jewellery & Diamonds India GSS      
Fischler Diamonds Belgium   Alrosa Alliance    
Fruchter Gad Diamonds Israel GSS      
Gemmata Belgium       Select Diamantaire
Gold Star Diamond India Accredited Buyer (GSS)      
Gomel PO Kristall Russia   Alrosa Alliance    
H Dipak & Company India GSS      
Hard Stone Processing Namibia Namibia      
Hari Darshan Exports India GSS      
Hari Krishna Exports India GSS Alrosa Alliance Dominion Select Diamantaire
Hasenfeld-Stein USA GSS      
HVK International India GSS Alrosa Alliance    
I.D.R.P. Belgium   Alrosa Alliance Dominion  
IGC Group Belgium GSS, Botswana      
Jasani Gems India GSS Alrosa Alliance    
Jewelex India India GSS      
Julius Klein Diamonds USA GSS, Botswana, South Africa, Namibia      
K. Girdharlal International India GSS      
Kapu Gems India   Alrosa Alliance Other Dominion Select Diamantaire
Karp Impex India GSS Alrosa Alliance    
KGK Diamonds India GSS, Botswana, South Africa Alrosa Alliance Dominion Select Diamantaire
Kiran Exports Belgium Accredited Buyer (GSS & Botswana)     Select Diamantaire
Kiran Gems India GSS, Botswana Alrosa Alliance Dominion  
Komal Gems Belgium     Dominion  
KP Sanghvi & Sons India GSS Alrosa Alliance   Select Diamantaire
Kristall Diam Company Russia   Alrosa Alliance    
Kristall Production Corporation Russia   Alrosa Alliance    
L&N Diamond Manufacturers Israel   Alrosa Alliance    
L. M. Van Moppes & Sons UK GSS Industrial      
Laurelton Diamonds Belgium Belgium GSS, Botswana Alrosa Alliance Dominion Select Diamantaire
Laxmi Diamond India GSS Alrosa Alliance Other    
Lazare Kaplan International Belgium Accredited Buyer (GSS & Namibia)      
Lazurit-D Russia   Alrosa Alliance Other    
Leo Schachter International Israel GSS, Botswana Alrosa Alliance    
Lieber & Solow USA GSS Industrial      
LLD Diamonds Israel   Alrosa Alliance    
Luk Fook Diamond (International) Company Hong Kong   Alrosa Alliance Other    
M. Suresh Company India GSS, Botswana Alrosa Alliance Other Dominion  
Mahendra Brothers Exports India GSS   Dominion  
Mohit Diamonds India GSS Alrosa Alliance Other    
Motiganz Diamond Group Israel Accredited Buyer (GSS, Botswana)      
Niru Diamonds Israel (1987) Israel GSS Alrosa Alliance    
Penford (Israel) Israel   Alrosa Alliance    
Pluczenik Diamond Company Belgium GSS, Botswana, Namibia Alrosa Alliance    
Pratham International DMCC India     Dominion  
Premier Diamond Alliance USA GSS      
Priti Gems Exports India       Select Diamantaire
Red Exim India     Dominion  
Richold S.A. Switzerland GSS Alrosa Alliance Other    
Rosy Blue Belgium GSS Alrosa Alliance Dominion  
Rosy Blue (India) India GSS Alrosa Alliance    
S. Vinodkumar Diamonds India GSS      
S.D. Diamond Russia   Alrosa Alliance    
S.V. Gems Belgium   Alrosa Alliance Dominion  
Safdico International Mauritius GSS, Botswana, South Africa      
Sahar Atid Diamonds Israel GSS Alrosa Alliance    
Schachter and Namdar South Africa Accredited Buyer (South Africa & Namibia)      
Shairu Gems Diamonds India GSS      
Sheetal Manufacturing Company India GSS Alrosa Alliance   Select Diamantaire
Shree Ramkrishna Exports India GSS Alrosa Alliance Dominion Select Diamantaire
Shri Hari Gems India       Select Diamantaire
Signet Direct Diamond Sourcing USA Botswana Alrosa Alliance   Select Diamantaire
Simoni Gems Belgium     Dominion  
Singh Diamonds India     Dominion  
Soradiam Belgium     Dominion  
Star Diamond Group Belgium   Alrosa Alliance    
Star Rays India GSS   Dominion  
Suashish Diamonds India Accredited Buyer (GSS)      
Sunnex Belgium     Dominion  
Swintu Diam Belgium   Alrosa Alliance    
Taché Belgium GSS, Botswana, South Africa Alrosa Alliance    
Tasaki & Company Japan GSS      
Trau Bros Belgium GSS, Namibia Alrosa Alliance    
V.D. Global India GSS Alrosa Alliance Other    
Venus Jewel India GSS Alrosa Alliance Dominion Select Diamantaire
Vijay Diamond UAE GSS      
Vishindas Holaram India GSS   Dominion  
Wing Hang Diamond Company Hong Kong Accredited Buyer (GSS) Alrosa Alliance    
Yaelstar Belgium GSS      
Yerushalmi Bros Diamonds Israel GSS, Botswana      
Yoshfe Diamonds International Israel GSS      
Yosi Glick Diamonds (2003) Israel GSS      

This article first appeared in the July edition of the Rapaport Research Report. To download a copy of the report, click here and log in with your username and password. Not yet a subscriber? Learn more and subscribe today.

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Tags: Alrosa, Avi Krawitz, De Beers, Dominion, Dominion Diamond Mines, Rapaport News, Rio Tinto, rough, Rough Diamonds, Sightholders
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