New Application in Synthetic Diamond Industry

While raw materials accounting for 64% of the cost, diamond tools added value is increasing. The output of China's single crystal synthetic diamond takes for 90% of the global output. In 2013, China's synthetic output reached ￥15,100,000,000, over 90% of the global output. However, China's synthetic diamond usually sell at a low price that it does not have advantage in high-end market. In the U.S. market, the unit price of synthetic diamond in Ireland and South Korea is 5.5 times and 4.1 times in China. In Japanese market, the unit price of synthetic diamond in Ireland, the U.S.,  and South Korea is respectively 6 times, 5 times, and 4.8 times in China.

Industrial clustering effect is obvious, and monopolization is formed. Superhard materials in Henan Province take up the biggest market share. In synthetic diamond industry, ZhongNan Diamond Co., Ltd. and Henan Huanghe Whirlwind Co., Ltd. are some of the most powerful companies in Henan Province.

The gross profits of diamond products are taking on a declining trend. Gross profits of Single crystal diamond and composite materials are at the risk of declining. Listed companies are positively expanding their business scope to diamond products industry chains. Domestically, superior diamond demand exceeds supply. The demand for superior diamond occupies 60% to 70% of the market proportion. Currently, China's superior synthetic diamond only takes up 25% to 30%.

Market demand for traditional application fields, such as oil exploitation and building stone, are stable. Electronic cars have seen a sharp increase. Meanwhile, photovoltaic industry and sapphire industry have brought about new demands.