Diamond price: Is profit loss or returning reasonable?

On October 6th, reporters and other people visited Zhongnan Jiete Superhard Materials Co., Ltd., General Manager Zhang Kui and Director of Sales Department Wang Fushan received us and made a brief analysis of the current situation of superhard market. For the situation that the market price of diamonds has been lowered several times in the past two months, General Manager Zhang Kui gave us the explanation: "This is the normal return of market prices." He said that since last year, floor tiles have been used for grinding materials. The trend of diamond replacement of silicon carbide has become more and more obvious, which has increased the demand for diamonds in the market. At that time, the status quo of the super-hard industry was: even if all the old presses were started, the market was still in short supply, and the price of diamonds was also from 1 to 8 points. The money has risen to more than 3 gross. The popularity of the ultra-hard market has attracted many practitioners in other industries, so the market has been exceptionally prosperous. However, this year, the anti-dumping of foreign country's floor tiles caused a big decline in exports. The domestic real estate industry was restrained, and the demand for domestic floor tiles was also declining. These several effects caused the sudden increase in the market to gradually shrink, but At the same time, the production of diamonds is rising, so the situation of oversupply appears, and the price of diamonds naturally falls back. Mr. Zhang believes that the price of diamonds is gradually returning to its reasonable profit value. So for the contradictions in the current market: the cost is rising, but the price of the product is falling. Zhang believes that this is only a reasonable market adjustment, 1.8 to 2 is the reasonable price of diamond, and the ordinary low-tech black diamond is Return to about 1.4 hair. Regarding the overall situation of the current diamond industry market, Mr. Zhang talked about his views. He believes that the sluggishness of the diamond industry is not unrelated to the economic environment. He believes that the current economic downturn can be described as the continuation of the economic crisis in 2008, when it was to save the crisis. The use of a series of very means, the current economy began to gradually show problems, the market once had a false prosperity, resulting in excess liquidity, and the country’s tight monetary policy followed by it also led to some social problems. . Mr. Zhang believes that although the overall situation, the diamond industry market is somewhat wilful, but 20 to 40 grade diamond products are still in short supply. After all, this market is divided into three high- and low-end markets. As far as the current situation is concerned, the downturn is the low-end market, and the mid-to-high-end market situation is still good. For the future of the super-hard industry, Mr. Zhang is very optimistic. He said that there is no substitute for diamond and CBN so far, which means that the advantages of diamond and CBN can not be replaced. In addition, the superhard industry has gaps in many areas. For example, diamond is used in the grinding of floor tiles. It is more in rough grinding, but it has not been involved in fine polishing and fine grinding. If diamond is used in this part, it is believed that the utilization rate of diamond will be extremely high. Great improvement. Mr. Zhang believes that diamond is an inevitable trend in replacing ordinary abrasives. Diamond is not only cost-effective, it is also more environmentally friendly than ordinary abrasives. Therefore, from the point of view of cost performance and environmental protection, the prospect of super hard industry will be very good.  

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