The photovoltaic and sapphire industry brings new demands to the diamond industry

Abstract Synthetic diamond industry: The new application of protruding raw materials accounts for about 64% of the cost, and the added value of the product field is the largest. The proportion of raw materials in production costs is relatively high, reaching about 64%, while the metal powder, graphite powder and top hammer in the raw materials occupy the main position, affecting the unit of the product...
Synthetic diamond industry: The new application of protruding raw materials accounts for about 64% of the cost, and the added value of the product field is the largest. Raw materials account for a relatively high proportion of production costs, reaching about 64%, while metal powder, graphite powder and top hammer in raw materials occupy a major position, affecting the unit cost of products. The ratio of domestic synthetic diamond products to synthetic diamonds reaches 3-5:1.

China's synthetic diamond single crystal production accounts for 90% of the world. In 2013, synthetic diamond production reached 15.1 billion carats, accounting for more than 90% of global production. The amount of synthetic diamond exported to China is low and the price is not high in the high-end market. In the US market, the unit prices of sales in Ireland and South Korea are 5.5 times and 4.1 times, respectively. In the Japanese market, the unit prices of synthetic diamonds in Ireland, the United States and South Korea are 6 times, 5 times and 4.8 times respectively.

The industry cluster effect is obvious, and the oligopoly pattern is formed. Henan has the highest market share of superhard materials. The synthetic diamond industry, Zhongnan Diamond, Yellow River Cyclone and Yu Diamond have a market share of about 80%, and a monopoly pattern has been formed.

There is a downward trend in the gross profit margin of diamond products. The gross profit margin of diamond single crystal and composite materials all have a downside risk. It is an inevitable choice for listed companies to actively expand the industrial chain into the product field.

Domestic high-grade diamond supply is insufficient. The demand for high grade diamonds accounts for approximately 60% to 70% of the total market. At present, China's synthetic diamond high grade diamond only accounts for 25%-30%, compared with 60% of the market demand, the gap is 30%-35%.

Demand in traditional applications has stabilized. Demand for traditional oil exploration and construction stone is stable; demand for electronic vehicles is growing rapidly.

The photovoltaic and sapphire industries are bringing new demands. Micron Diamond Line for Photovoltaic: In 2015, global and Chinese demand is expected to be 30 billion meters and 9 billion meters respectively; in 2016, it will be 50 billion meters and 15 billion meters respectively. In the sapphire industry, the global and China micron diamond line demand in 2015 was 1.33 billion meters and 470 million meters respectively.

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