Abstract When market demand is strong, the diamond industry has the capacity to expand and demonstrate high flexibility in performance. Currently, the diamond sector is showing signs of recovery. Traditional applications are growing rapidly, with 70% of construction materials showing an upward trend.
If the market demand is warm, the diamond industry has the capacity to release space, and its performance is highly flexible. At present, the diamond industry is showing clear signs of bottoming out, indicating a potential turnaround in the near future. The growth in traditional fields remains the strongest, especially in the construction materials sector, where over 70% of products are experiencing a rising trend. This trend is being driven by increased infrastructure spending, such as in railway projects. In 2013, railway investment is expected to reach between 650 billion and 700 billion yuan, representing at least a 15% increase from the 2012 estimate of 560 billion to 600 billion yuan. Previously, the expansion of downstream ceramic industries in 2010 played a key role in boosting diamond demand. This was largely due to the relocation of Foshan’s ceramics industry to cities like Tangshan and Shijiazhuang in Hebei. These shifts created new opportunities for diamond usage in industrial applications. There are also early signs of growth in emerging applications, with rapid adoption in sectors like oil and gas drilling. The demand for diamond drill bits is strong, and they are currently in the phase of replacing traditional hard alloy bits. Similarly, the mobile phone polishing industry is seeing increased application. If synthetic diamond prices continue to decline, it could open up a much larger market. The falling price of synthetic diamonds has already surpassed the disadvantages of natural diamonds, giving them a competitive edge in terms of cost, technology, and product quality. The micron powder business is set for significant growth in 2013. The production line was relocated to Zhengdong New District in April 2012, and the company has since streamlined operations in areas such as finance, customs, taxation, and internal management. It is expected that sales will see substantial growth this year, with monthly volumes reaching between 100 and 150 million carats. Cutting wire saws have been affected by the downturn in the photovoltaic industry. In 2012, the low price of polysilicon led to weak demand for cutting wires, which resulted in poor profitability. However, as polysilicon prices stabilize and the company improves its wire saw technology, along with introducing new business models for downstream customers, the outlook for 2013 is expected to improve gradually. The company is one of the few in the country that has mastered the production of large single crystal cores and can supply them in bulk. Henan Huajing Company holds a 51% stake in Jiaozuo Dajing Project Company. The downstream applications of large single crystals include mobile phone grinding tools and gemstone machining tools. Mobile phone grinding tools account for a significant portion of the demand. The main downstream customers of Jiaozuo Company include Apple, Foxconn, Samsung, and Sony. Products are primarily sold in China through direct sales, with a small portion exported to countries such as South Korea, India, Japan, and Vietnam. There is currently a shortage of supply, and with the installation of new equipment, production is expected to ramp up significantly in 2013.
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