To All Members and Partners,
Recent market data indicate that global demand for lab-grown diamond polished stones and finished products continues to rise, while domestic rough diamond production capacity expansion is slowing and market prices are gradually stabilizing. However, upstream raw material costs and other production factors have increased substantially, leading to a sharp rise in overall production costs. The current sales and pricing mechanisms are no longer sufficient to address prevailing market conditions, imposing severe pressure on rough diamond manufacturers. Since last year, multiple enterprises have publicly announced price increases on several occasions.
This Center hereby issues a formal warning: cost-side pressures are unlikely to abate in the short term. Persistent low-price competition will result in severely compressed profit margins, or even losses. All members are urged to closely monitor price fluctuations, rationally assess cost affordability, avoid operational crises arising from price inversion or cash flow constraints, and adjust strategies promptly to strengthen risk resilience.
In response to the widespread calls from our member units, and with the aim of guiding the industry toward sound development while preventing disorderly low-price competition, we hereby put forward the following initiatives:
I. Scientifically Adjust Capacity and Raise Prices Reasonably
Production capacity shall be adjusted in a timely manner based on market demand. Moderate price increases should be adopted to avoid cutthroat competition and to safeguard reasonable profit margins
II. Innovate Sales Models and Optimize Market Strategies
Qualified enterprises are encouraged to adopt new transaction methods, such as auction-based sales, to enhance pricing power and protect their legitimate interests.
III. Establish a Grading System and Standardize Industry Specifications
The industry shall work collectively to accelerate the development of a viable technical and regulatory framework for the sorting and grading of lab-grown diamond rough, thereby establishing a solid foundation for fair transactions and scientific pricing.
The Center will continue to uphold its independent, objective, and impartial third-party stance, deepen research on market data, and provide regular professional assessments and risk control services, in support of the standardized and high-quality development of the lab-grown diamond industry.
Henan Provincial Lab-Grown Diamond Trading Center
May 30, 2026
