India, known as the largest producer of diamonds, is also the largest producer of "mele". "It is estimated that 90 per cent of the total mele production is cut in India," said Vipul Shah of the Gem & Jewelery Export Promotion Council (GJEPC). Surat is the first in the country to produce "mele", it accounts for 90 percent of total production.
There is one's own language for determining the size of these very small diamonds. Diamonds "mele", which consumers usually call "diamond chips", are the main material in the industry, especially in designer jewelry. The term "mele" refers to a group of small diamonds and comes from the French word "mêlée", which means "mixed". "Mele" has a range from 0.001 - one thousand carats - up to 0.15 carats, and make in diameter usually from 0.6 mm to 3.5 mm. In Indian trade, "mele" diamonds ranging in size from 0.001 carats to 0.025 carats are called "asterisks". The average number per carat in the category of "stars" is from 40 to 333 pieces. Stones ranging in size from 0.12 to 0.15 carats are classified as "large chalk".
The size of the "chalk" is determined by means of diamond sieves, which are high-precision measuring devices consisting of round metal plates with the exact dimensions of the holes, as shown below. Sizing size is in the range from 000 to +16. You can also produce sets of sieves in increments of a quarter.
MELE AND INDIA
Vipul Shah said that the history of production of "mele" diamonds in India goes back to 1962, when the Indian government allowed the import of diamonds for cutting and polishing purposes. Initially, India cut and polished inexpensive small diamonds of the "star" type. Manish Jain, chairman of the All India Gems and Jewelery Trade Federation (GJF), explains: "From the late 1990s to the beginning of this century, as India's experience in Cutting areas and Indian lapidary factories began to use more and more modern technologies, it became clear that the differences in prices, depending on the quality provided by other major centers of cut, became smaller. For large diamond mining companies it made sense,
Reflecting on the factors that make India the largest center for faceting and polishing "mele", Mark Gershburg, founder and CEO of Gemological Science International (GSI), notes: "New cutting machines and advanced technologies have improved the quality of small stones and Increased the number. " In addition, labor costs in India are lower than in other countries.
LOGISTICS
The skill of cutting and polishing all types of diamond workers is taught by industry groups, for example, the Indian Diamond Institute (IDI). Seventy percent of India's workforce is engaged in cutting "mele", Vipul Shah says. Sorting and evaluation of "mele" is akin to art, since it is necessary to hold not only the scattering of tiny diamonds, but also their sorting. The use of high-tech equipment from Russia and Israel made it possible to replace manual methods, but the cutting of "mele" diamonds is still considered a laborious affair.
According to the information of GJEPC, the leading Indian companies engaged in cutting "mele" are Kiran Gems Pvt. Ltd., Sheetal Diamonds Ltd., Rosy Blue, Mahendra Brothers Exports Pvt. Ltd., Dimexon Diamonds Ltd. And Asian Star Co. Ltd.
PROFITABILITY
Mele, like other rough diamonds, is received from diamond mining companies, including De Beers, ALROSA, Rio Tinto, Dominion Diamond Corporation and other African mines. Although there is no shortage of supply of raw materials for the "mele", Vipul Shah believes that because of the existing economic situation, the "mele" cut or any other diamonds does not bring high profits. "Raw material prices have risen, but because of recessionary trends in the global market, prices for diamonds or finished goods have not risen to the same extent, which has damaged the profitability of the business," he explains. Jain notes that profitability in different markets is different and it is different for different quality categories.
Dinesh Lakhani, director of Kiran Gems Pvd. Ltd., notes that production costs have undergone "tremendous changes over the past five years, having increased threefold as compared to those at that time." Vipul Shah gives several explanations for such an increase, including inflation and wage growth, the use of expensive modern equipment and interest costs and depreciation costs for this equipment. "
Yet, the most basic challenge facing India, says Gershburg, is "the exchange rate of the rupee against the dollar, as this affects the cost of producing rough diamonds and then, ultimately, the prices of diamonds."
DEMAND
"There is a positive demand for the" mele "category. There is a good movement even in the "mele" category of higher purity, "says Dinesh Navadia, president of the Surat Diamond Association (SDA), adding that" the business associated with mele is better in comparison With the production associated with larger diamonds. " He explains the higher demand for the use of "mele" "more complex jewelry designs," noting that "mele" is perfect for modern designs. "
In addition, Lakhani comments: "In accordance with the current conditions, when business with mele is improving, our business strategy was to produce" mele ", which is comparatively more profitable than the production of" asterisks ", as for their cutting and production." As for profitability, he warns: "There are difficulties with profitability in the whole industry. Pressure is applied to all product categories. But with respect to the "mele" the pressure is lower, and sales go smoothly. As for the "mele", stock levels are under control, and the supply cycle is much shorter. "
Vipul Shah talks about the good demand for "chalk" in Europe, the Middle East, the United States, China and the domestic Indian market. Navadia notes a very high demand for "chalk" from Hong Kong and Bangkok in Asia, and then the US goes, because buyers there like intricate designs of jewelry, in which "mele" is often used. Jain explains: "Size is not a distinctive indicator. It is prices for any specific size that determine what will be sold in a particular market, and what will not. In the United States, more low-quality diamonds are consumed more, although, of course, there are special buyers in the US who buy expensive products. "
PRICES
According to Sanjay Shah, director of Gold Star Diamond Pvt. Ltd., currently the prices for "mele" are low compared to the last few months, about 5 percent lower. "The demand for" chalk "is very unstable," he says, "and although we saw a rise in prices for diamonds of other sizes and for larger stones, the prices for" chalk "were low or stable. The fact that the volume of production was higher than demand, and the demand for jewelry depended on the price, is probably the reason that the prices for "chalk" are not keeping up with the price increase for other diamonds. He believes that prices are expected to remain stable.
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