Antwerp diamond sector faces collapse as trade hits historic low
Antwerp's diamond trade is at an all-time low and is on the verge of collapse, the Gazet van Antwerpen reports. Antwerp's imports of rough diamonds have fallen by 38 per cent in one year, and this decline is structural, the paper writes.
In 10 years, imports of rough diamonds have fallen by 70 per cent. Trade in polished diamonds has also hit rock bottom. Today, Antwerp's diamond sector comprises some 1,600 companies and provides around 6,000 jobs.
"But not for long. Within five years, the diamond sector in Antwerp will have almost completely disappeared," an anonymous diamond trader told the paper. "Recently, many people in the sector have lost their jobs," added an expert in the diamond trade.
This decline is partly due to Europe's boycott of Russian diamonds. According to the diamond trader, the ban is not hurting Russia because it is now selling its diamonds to countries such as Dubai and South Africa.
Structural issues
The industry's problems are more structural. Competition from synthetic diamonds has soared in recent years. These can be up to 10 times cheaper than real diamonds and are indistinguishable to the human eye.
In addition, Antwerp's diamond sector is heavily dependent on China and the US, and declining purchasing power in these countries has taken its toll. Belgium's regulations on the industry also discourage many dealers from working in the country.
While the sector is expected to shrink drastically, experts don't believe it will disappear completely. Antwerp is known for having the most transparent diamond sector in the world, with no blood diamonds or diamonds from Russia on sale. This transparency is becoming increasingly important for large jewellers, says one expert.
#FlandersNewsService | © PHOTO EMMANUEL DUNAND / AFP
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