Everything about diamonds! 2017 inventory, 2018 forecast

As of mid-December 2017, global rough diamond prices have increased by 2.7% compared with the same period of last year, and the price of loose diamonds has decreased by 3.5%. However, despite the shrinking profits of processing companies, as a midstream company in the industry, it still purchased $5.3 billion worth of diamonds from De Beers, including $450 million purchased by the final owner, an increase over last year. 7%, a significant increase of 81% over 2015. De Beers’ annual sales fell 5% from the same period last year, but increased 53% from 2015. The ALROSA company, whose main business is located in Russia, is expected to achieve US$4.4 billion in diamond sales in 2017, which will be comparable to its 2016 sales, but up 27% from 2015. For the midstream companies in the diamond industry, their inventory in 2017 has been in surplus, as diamond inventories have moved from the upstream of the diamond industry to the middle. For example, industry giants De Beers and ALROSA have reduced their inventories by approximately 1.6 million and 2.3 million carats in the third quarter of 2017, respectively, but the two producers are increasing their production this year. Global natural diamond production is expected to rise to approximately 148 million carats in 2017, an increase of 7% over last year. This increase was mainly attributable to the commissioning of three new mines. The reason was that the original mines had previously been reducing production and dismantling projects, and are currently increasing production. 下载.webp.jpg 2017 Rough Diamond Price Chart Despite various operational setbacks and political challenges, many mines have been shut down this year, including the Alrosa Mill Mine, which was stopped due to an accident, and most of the mines are still being completed in an orderly manner. This year's production target. Most industry insiders believe that the diamond industry performed strongly in the first half of 2017, but it was relatively disappointing in the second half. At the beginning of 2017, the demand for rough diamonds increased sharply as Indian processors got rid of the liquidity crisis caused by the government's currency exchange at the end of 2016 and resumed business. However, by the middle of the year, as new loose diamonds continue to flood into the market, the global backlog of bare diamond stocks has intensified, and processors are also shrinking their business. The news that the Diwali factory is closed for a long time in the fall is undoubtedly worse. . In recent weeks, processors have begun to re-energize, they are stocking for the Christmas and Indian wedding season, and meet the needs of the Chinese New Year. The US consumer market is currently under relatively strong economic support. As the stock market continues to hit record highs, most of the employment figures are also at a favorable level, so consumer confidence is full. The upcoming tax reform and the recent appointment of the new Fed chairman will help to maintain sustained and steady policy support and continue to support consumer confidence. Signet Jewelers, the largest jeweler in the United States, has consistently performed poorly in 2017, but this is mainly due to the adverse effects of corporate restructuring, not necessarily due to the US consumer market. In fact, global diversified business giant Tiffany & Co. recently said that the United States is one of its largest markets. 1514259243282288.jpg Tiffany & Co., a jewelry store based in Macau, has also noticed the company's extraordinary advantages in the Chinese mainland market. The recent announcement by Chow Tai Fook, a major jeweler in Greater China, confirms this. The company has seen same-store sales growth for four consecutive quarters in the mainland market, and has been in the Hong Kong and Macau markets for three consecutive quarters. Kind of result. Luk Fook Jewellery Group, which has more business than Chow Tai Fook (whose its business is more in the Mainland), achieved an 11% increase in same-store sales in the six months ended September 30 this year, which is particularly eye-catching compared to the previous three years. . Chow Tai Fook pointed out on November 21 that the market has “turned off because the emerging jewellery market is recovering” and Luk Fook Jewelry recently believes that the situation has “improved”. To date, the United States remains the world's largest market for diamond consumption, accounting for about 50%. Greater China, including China, Hong Kong, Macau, Taiwan, and India are the fastest growing large markets in the industry. Global diamond supply is estimated to decline slightly by about 1.5% in 2018 to 146 million carats. The global wholesale demand for loose diamonds is estimated to reach $26.6 billion next year, an increase of 3.8% over 2017. The following are the possible factors affecting the diamond industry in 2018 and need to be addressed: Indian billionaire Anil Agarwal is very interested in diamonds. After holding more shares in 2017, it has become De Beers. The majority shareholder of the parent company Anglo American, and may gain control of the company in 2018. Next year, Alrosa will decide whether to rebuild or close its Mir mine, which had a water permeable accident in August 2017; if it decides to permanently close the mine, it will have a positive impact on the global supply and demand situation, because the mine The loss of production will offset the supply of production in Renard and Liqhobong (in the three mines, the two mines have already started production this year) 1514259281557777.jpg Russia's Mil underground mine in December this year, due to acquisition rumors, Tiffany's share price once rose to an all-time high, this good news for the international luxury market may continue to ferment in 2018. Lucara Diamond Corp is currently re-excavating the original ore on the south side; with the new advanced large stone recycling system in place, Lukla is expected to produce more worthwhile diamonds by 2018. Siegnet Jewelry's stock may pick up after a disappointing 2017 after a corporate-wide restructuring concept, including the sale of its customer credit portfolio, the closure of underperforming mall stores, and the expansion of non-shopping Monopoly business, including online and digital sales strategies and adjusting management. Zimbabwe’s state-owned Zimbabwe Mining Development Corporation (ZMDC) has started a comprehensive mining operation in the Maragne mine, which has invested $30 million to purchase new equipment and is expected to produce more than 2 million carats in 2017. On the other hand, in 2018, the production level was increased to about 3.5 million carats. De Beers's Voorspoed mine in South Africa, Gem Diamond's Ghaghoo mine in Botswana, and former Rio Tinto are looking for new buyers, expected to be in 2018. Have a new owner in the year. As the depth of mining at De Beers and the Gahcho Kué mine in Mountain Province Diamonds is further increased in 2018, production from the central vein is expected to increase, although the grade may be lower, but there may be high quality diamond. Both Kennedy Diamonds and Peregrine Diamonds revealed that they had discussed strategic cooperation in 2017, indicating that the two are expected to achieve strategic cooperation in 2018. Stornoway Diamonds is building a waste rock sorting facility to ease diamond breakage during processing and is expected to achieve higher levels of Stornoway's Renard diamonds when the second quarter of 2018 is completed. the price of. 1514259312408844.jpg Karowe in Botswana experienced a disappointing 2017, after Firestone Diamonds (London Stock Exchange: FDI) near the completion of the mining of low-grade areas in the Likbang mine. It is expected to enter the open pit mining area in 2018 and produce higher quality diamonds. The review of the proposed South African Mining Act will take place in mid-February 2018, which may include De Beers and Petra Diamonds (London Stock Exchange: PDL). Diamond companies have an impact on ownership and operations in the country. Further work on Luaxe, the world's most important untapped diamond project, will be carried out in 2018, and it is expected to further clarify resource conditions and future production plans and production dates, which are currently expected to be commissioned after 2020. The US dollar trend is expected to continue to weaken in 2018, which will support the global consumer demand for luxury goods, but if the dollar reverses, it may have an adverse impact. Shore Gold (TSX: SGF) is expected to conduct a further feasibility study for its Star-Orion South project in Saskatchewan, Canada, in 2018. It is expected to increase the economics of the project by reducing capital expenditures by nearly $2 billion. 1514259359101882.jpg North Diamond Minerals (TSX GEM: NAR) is expected to set up an exploration camp in 2018 for its latest discovery in Canada. The drilling of the Mel diamond mining area will further demonstrate the importance of this discovery. The production of synthetic diamonds is expected to continue to grow in 2018, but the demand for this product by most consumers remains unclear, and the production of large gem-quality diamonds still accounts for only a small fraction of the natural diamond equivalent production. Dunnedin Ventures plans to implement its first drilling program in Canada's Nunavut region in 2018, possibly becoming a new near the Jericho mine currently in production. Find. Lucapa Diamond's Mothae mine in Lesotho is expected to go into production in the second half of 2018, which may produce diamonds with an average value of more than $1,000 per carat. The Diamond Producers Association, established by the diamond industry, will resume its marketing campaign for rough diamonds, which may have an impact on consumer demand; the association launched its second marketing campaign in the United States in November 2017. The first marketing campaign was held in India and the first marketing campaign will be held in China in April 2018. Five Star Diamonds plans to continue exploration and development of its 20 Kimberley rock projects in Brazil in 2018, which is expected to make Brazil an important contributor to the global diamond supply. American foundry diamond manufacturer Diamond Foundry plans to build a "MegaCarat foundry" facility in Washington State. The first reactor is expected to be deployed in the second quarter of 2018, which will allow the company to estimate an estimated 100,000 carats. The annual output has further increased.

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