9MAY 2024LAB-GROWN DIAMOND MARKET WITNESSES RECOVERY, SAYS CAREEDGERUSSIAN CRUDE MOUNTS TO 40 PERCENT OF INDIA'S OIL IMPORTSAccording to CareEdge Advisory, Lab-grown Diamonds (LGDs) exports are poised to experience a resurgence in FY25, with anticipated growth of 7-9 percent, reaching a value of approximately $1500-1530 million. Despite a recent decline in LGD exports, with a year-on-year decrease of around 16.5 percent in FY24, the sales volume of LGDs has been on the rise. However, falling prices have impacted overall exports. The depreciating rupee is expected to provide some support to the industry.Looking ahead, the demand for LGD exports is forecasted to rebound in FY25, driven by factors such as price competitiveness, environmental sustainability, and increased competition from India against other major LGD-producing nations. Tanvi Shah, Director at CareEdge Analytics and Advisory, highlighted that the gems & jewelry industry is increasingly relying on the rapidly growing LGD market to offset the effects of sluggish demand for natural diamonds.Colin Shah, Managing Director of Kama Jewelry, commented on the outlook for Lab Grown Diamond Exports for FY25 based on the CareEdge report. He noted that LGDs have gained popularity due to their cost-effectiveness and eco-friendly attributes. While FY24 saw a dampened sentiment in LGD exports due to various global economic factors, countries like Germany, the UK, Italy, and China experienced increased exports, possibly due to the G7 ban on Russian-origin diamonds. In April, Russia's share in Indian crude oil imports surged to nearly 40 percent, up from 30 percent in March, nearing its previous peak of 42 percent in July. This increase was driven by higher global oil prices, prompting Indian refiners to boost their intake of discounted Russian barrels to mitigate their average crude purchase costs.According to energy cargo tracker Vortexa, Indian refiners imported 1.78 million barrels per day (mb/d) of crude oil from Russia in April, marking a 19 percent increase from March. This volume surpassed both China's imports of 1.27 mb/d and Europe's 396,000 barrels per day (bp/d) of seaborne Russian crude for the same month.In April, Russia outpaced India's next three top suppliers - Iraq, Saudi Arabia, and the UAE - combined in terms of crude oil imports. However, India's overall crude imports experienced an eight percent decline month-on-month to 4.5 mb/d in April. Imports from Iraq, the second-largest supplier, plummeted by 31 percent to 776,000 barrels per day (bp/d), while those from Saudi Arabia dipped by 6 percent to 681,000 bp/d. Additionally, imports from the UAE dropped by 40 percent, and those from the US decreased by 15 percent.Iraq's share in Indian imports fell to 17 percent in April from 23 percent in March, while the UAE's declined to six percent from nine percent. Notably, Russia's share in April exceeded its average share of 35 percent throughout 2023-24.The industry executive noted that Indian refiners are increasingly turning to Russian oil due to the current high global oil prices, which are impacting their profitability. Indian Oil, the nation's top refiner, reported a 52 percent drop in its fourth-quarter profit, underscoring the challenges posed by elevated oil prices on refiners' margins.
< Page 8 | Page 10 >