The diamond manufacturing industry produced in laboratories is the latest sector to feel the effects of the energy crisis in China—and if the situation worsens, consumers may face exorbitant gift prices. Liu Hoxiang, a consultant at the National Gemstone Testing Center, states that the production of gemstone-grade jewels has decreased by about 10% to 15% over the past month. Approximately 7 million carats of synthetic diamonds are produced annually, with 3 million carats coming from China.
Synthetic diamonds have become more popular, affordable, and sustainable compared to their mined counterparts. The stones are manufactured using intense heat and pressure to mimic the natural diamond formation process. A small piece of pure graphite or carbon-rich gas is placed under high temperatures, allowing carbon atoms to bond with the graphite, resulting in a gemstone within weeks.
Diamonds are not the only product affected by the energy shortage in China, which has spread across the country since the summer due to rising coal prices. Manufacturing activity in the country's vast industrial sector contracted in September for the first time since the pandemic began; producers of metals, clothing factories, sheep farmers, and apple suppliers have also been impacted. Liu mentioned that as the energy crisis continues, some synthetic diamond producers have announced plans to raise prices without providing specific details.
