British mining major, Rio Tinto, will be investing Rs 370-crore for exploration and mining of diamonds in Madhya Pradesh's Bunder town over the next three years, a senior State Government official said.
The Madhya Pradesh Government and Rio Tinto will be signing a Memorandum of Understanding (MoU) soon for the same, Madhya Pradesh's Additional Chief Secretary (Commerce, Industry and Employment), Satya Prakash, told reporters on the sidelines of an ASSOCHAM event here today.
Rio Tinto was given prospecting license for the project in 2006. Prakash also said that Bharat Petroleum Corporation Limited's (BPCL)'s refinery in Bina will commence trial production next month.
BPCL has invested Rs 10,600-crore in the refinery and over 90 per cent of the work is complete as of now, he said. Bina refinery is set up by BPCL's subsidiary Bharat Oman Refineries Limited and will be having a capacity to process 6-million tonnes of crude per annum.
Monday, August 30, 2010
Friday, August 27, 2010
Market Stagnating Towards End of Summer?
The wholesale market is stable but relatively quiet as suppliers in Israel and Belgium slowly return from vacation. There is good demand for bread and butter rounds below 2.99-carats, in better qualities, while demand for 3.00-carat-plus stones has softened slightly. There has been a slight uptick in demand for smaller commercial goods. Retailers report increased traffic and better sales than expected for August. Demand for bridal stones is steady with 1.00- to 2.00-carat, G+, SI+ center stones being the most popular among consumers.
Sunday, August 1, 2010
JA NEW YORK SHOW FEEDBACK: US MARKET IS IMPROVING: THOUGH STILL HAS A WAY TO GO
The JA New York Summer Show was held in the Javits Center July 25-28. In a positive sign for the state of the industry, this year there were roughly 1,000 exhibiting companies, and a marked increase in corresponding attendee buyers at the show.
While some exhibitors mentioned the impression of lower foot traffic, the attendees who did participate were more focused. Rather than curious browsing, people seemed to be making the conscious decision to attend a trade show such as this one, "if they aren't of serious intention, they won't waste their time and resources to come," explained one.
One view as to the high level of exhibiting companies was that Vegas was so overwhelming and unexpectedly positive that many exhibitors came to the JA New York show assuming that the end to the slump was already here. These pundits might have been disappointed. As has been the theme over the past two years in the USA - the definition of success at a Trade Show is based on a short-term versus long-term objective. As one industry veteran observed: "Do you approach trade shows with a tangible 'turnover numbers' goal, or with a 'meaningful contacts made' goal?"
According to Gruenberger Diamonds, a US and Belgium-based diamond wholesaler: "Traffic is clearly up from last year. More significantly, the attendees are primarily retailers this year - and less dealers or brokers from 47th Street looking for a quick bargain". People are buying for stock rather than looking for a random ‘great deal’ to resell (as dealers).
Buyers are very subjective in their quest for quality. "We have seen that buyers are seeking higher-quality and more exact specifications in a shift toward selectiveness - even on lower-priced items, or even more so on the lower-priced items", is the explanation.
Many attendees had mostly prearranged their visit, with meetings set and specific people to see, rather than random browsing. Focus was the predominant theme, rather than curiosity. According to Pink Diamonds, a high-end jewelry manufacturer from California: "It doesn't matter so much how many pedestrians are in the show - if you plan to meet your customers, you have your meetings, like any show." Founder Sam Azemoon stressed that a Trade Show is also for advertising, and presenting your brand and identity, and not only to reach a target for "at-the-show sales numbers".
In general, the consensus was a "vast improvement over last year," said Maidi Corp, a US-based specialist in high-end fancy colored diamonds. "The US Market is improving and moving toward the direction where it used to be, but we still have a way to go". They joined in the recurring observation that people are now attending trade shows to buy, rather than out of simple curiosity.
Diamonds were not the only gems at the show. There was a clear focus on non-diamond materials, e.g. coral, cubic zirconium, semi-precious stones, beads, silver, etc. In the fashion designer pieces the emphasis was more on the unique design of the piece than on the commodity component of the jewelry. This was attributed to a more price-conscious consumer who would rather pay less for a unique item than pay more for a "high-value" item.
One company who is no stranger to such a shift in price-trend is A.V. Diamonds, a very large-scale Texas-based low "price point" jewelry manufacturer. According to A.V., customers are looking for "a larger look for a lower price". Even displaying items with a $129 price-point made of melee that gives a ‘one carat look’. "The larger diamonds sought after are of lower quality, because that's what consumers look for."
Although gold with diamonds still is, and will remain, crucial in the major US markets and in Canada, silver has grown much quicker than expected. In the Midwest USA and outside of NY there is increased demand for sterling silver with diamonds, and much less on higher-end pieces. "Three years ago we only would bring one tray of silver jewelry to a trade show," said an executive from A.V. Diamonds, "But today it makes up almost half of what we do (in volume)".
One might observe that manufacturers are able to redefine jewelry based on what can or cannot sell the diamonds. Lower priced diamonds can be set in a cheaper base-metal since the selling point of that piece is the diamond content.
Higher priced diamonds would be needed for the more designer or fashion pieces (to maintain the quality level), but this prohibitively increases the cost of such pieces. - Hence we are seeing other materials such as coral, semi-precious stones, or even those with no stone-component at all.
While some exhibitors mentioned the impression of lower foot traffic, the attendees who did participate were more focused. Rather than curious browsing, people seemed to be making the conscious decision to attend a trade show such as this one, "if they aren't of serious intention, they won't waste their time and resources to come," explained one.
One view as to the high level of exhibiting companies was that Vegas was so overwhelming and unexpectedly positive that many exhibitors came to the JA New York show assuming that the end to the slump was already here. These pundits might have been disappointed. As has been the theme over the past two years in the USA - the definition of success at a Trade Show is based on a short-term versus long-term objective. As one industry veteran observed: "Do you approach trade shows with a tangible 'turnover numbers' goal, or with a 'meaningful contacts made' goal?"
According to Gruenberger Diamonds, a US and Belgium-based diamond wholesaler: "Traffic is clearly up from last year. More significantly, the attendees are primarily retailers this year - and less dealers or brokers from 47th Street looking for a quick bargain". People are buying for stock rather than looking for a random ‘great deal’ to resell (as dealers).
Buyers are very subjective in their quest for quality. "We have seen that buyers are seeking higher-quality and more exact specifications in a shift toward selectiveness - even on lower-priced items, or even more so on the lower-priced items", is the explanation.
Many attendees had mostly prearranged their visit, with meetings set and specific people to see, rather than random browsing. Focus was the predominant theme, rather than curiosity. According to Pink Diamonds, a high-end jewelry manufacturer from California: "It doesn't matter so much how many pedestrians are in the show - if you plan to meet your customers, you have your meetings, like any show." Founder Sam Azemoon stressed that a Trade Show is also for advertising, and presenting your brand and identity, and not only to reach a target for "at-the-show sales numbers".
In general, the consensus was a "vast improvement over last year," said Maidi Corp, a US-based specialist in high-end fancy colored diamonds. "The US Market is improving and moving toward the direction where it used to be, but we still have a way to go". They joined in the recurring observation that people are now attending trade shows to buy, rather than out of simple curiosity.
Diamonds were not the only gems at the show. There was a clear focus on non-diamond materials, e.g. coral, cubic zirconium, semi-precious stones, beads, silver, etc. In the fashion designer pieces the emphasis was more on the unique design of the piece than on the commodity component of the jewelry. This was attributed to a more price-conscious consumer who would rather pay less for a unique item than pay more for a "high-value" item.
One company who is no stranger to such a shift in price-trend is A.V. Diamonds, a very large-scale Texas-based low "price point" jewelry manufacturer. According to A.V., customers are looking for "a larger look for a lower price". Even displaying items with a $129 price-point made of melee that gives a ‘one carat look’. "The larger diamonds sought after are of lower quality, because that's what consumers look for."
Although gold with diamonds still is, and will remain, crucial in the major US markets and in Canada, silver has grown much quicker than expected. In the Midwest USA and outside of NY there is increased demand for sterling silver with diamonds, and much less on higher-end pieces. "Three years ago we only would bring one tray of silver jewelry to a trade show," said an executive from A.V. Diamonds, "But today it makes up almost half of what we do (in volume)".
One might observe that manufacturers are able to redefine jewelry based on what can or cannot sell the diamonds. Lower priced diamonds can be set in a cheaper base-metal since the selling point of that piece is the diamond content.
Higher priced diamonds would be needed for the more designer or fashion pieces (to maintain the quality level), but this prohibitively increases the cost of such pieces. - Hence we are seeing other materials such as coral, semi-precious stones, or even those with no stone-component at all.
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