Antwerp ( Brussels Morning Newspaper) – The situation in the Antwerp diamond sector would be considered in crisis generally, with both overall trading numbers in decline for the historic period. Overall, the diamond trade in Antwerp in 2024 was €23.7 billion, down by 25 % from the year before. These include notably reduced consumer demand and scrapping of Russian diamond exports.
Karen Rentmeesters, CEO of the Antwerp World Diamond Centre (AWDC), highlighted the challenges faced by the industry:
“The consumer is hesitating; the demand from China, for example, has decreased.”
This has led to contention on the prognosis of Antwerp as identified as one of the prominent diamond trading cities.
The diamond industry in Antwerp is at the worst of times right now, with a breakdown in the trade value of a quarter caused by dwindling market demand and cutting-edge stones made synthetically. Antwerp cannot be considered an exception, as many similar problems appear in diamond markets all over the world. Some Rentmeesters also pointed out that they are feeling the heat from lab-grown diamonds, which have now been priced at an all-time low.
“There is also a lot of competition from the ‘lab-grown’ or synthetic diamond. Together with the decreasing demand, this is causing prices to drop to an all-time low,”
she stated.
The loss caused by the ban on Russian diamonds can hardly be overestimated since Russia supplied 35% of rough diamonds to Antwerp. Imports of rough diamonds in the last year are down by 38%, and their total level in the last 10 years has declined by over 70%, which is threatening Antwerp’s position as one of the world centres of diamond trading.
Policymakers now face a decision:
“Do we anchor the Belgian diamond sector or not?”
With about 1,400 diamond companies, it greatly relies on economic stability, and it directly and indirectly gives work to about 3,500 people.
Bart De Hantsetters, CEO of Antwerp’s Diamcad, emphasised the urgency of addressing these challenges:
“Dubai, India, but also countries in Africa certainly want a piece of the pie (…) Our policymakers have to make choices. Do they want to anchor the diamond sector here? Then they have to relax the rules and set their noses in the same direction,”
says De Hantsetters.
What is the future of Antwerp’s diamond industry?
While dealing with these pressing issues, it is nice to see that there are demands for more friendly policies in Antwerp to sustain the sector. Rentmeesters pointed out that many companies are reconsidering their presence in Antwerp due to bureaucratic problems:
“We notice that some companies are questioning whether it makes sense to stay in Antwerp. They feel that there are too many obstacles that could disappear. We think it is time for something to change.”
Issues related to customs policies are also increasingly being raised, leading to delays or fines on diamond transport without proper reasons.
“Diamonds are also sometimes blocked and fined by Customs for an unnecessarily long time,”
Rentmeesters adds.
“Why is not always clear or straightforward? There is a lack of a regulatory framework around this, which can remove the uncertainty of some entrepreneurs.”
The future of the diamond business in Antwerp remains uncertain due to stiff competition from newly developed markets such as Dubai and India. Thus, policymakers have found themselves at a crossroads, an insistence will be inevitable in order to reignite this great industry, which has been the pride of the country. As Rentmeesters concluded,
“We think it is time for something to change,”
underscoring the need for reform to adapt to an evolving market landscape.
