India: Cutters Under Pressure

Weak sentiment, withmanufacturers under pressure due to sluggish polished demand and tight profitmargins. Factories operating at reduced capacity, and some manufacturersslashing salaries of polished workers. Fewer foreign buyers in Mumbai after LasVegas shows. Steady orders for 0.30 to 0.99 ct., G-J, VS-SI diamonds, butprices continue to soften. Concern that rising demand for synthetics iscannibalizing small-stone market.

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