Present Situation and New Applications of Synthetic Diamond Industry

The cost of raw material accounts for about 64%, and it is the biggest added value in products field. Raw materials have higher proportion in the cost of production, around 64%, while metal powder, graphite powder and top hammer of raw materials have been occupied the main position, influencing the unit cost of the products. Some synthetic diamond suppliers expressed that the value ratio of domestic synthetic diamond products and synthetic diamond has reached 3-5:1.

The output of synthetic diamond single crystal in China accounts for 90% of global production. The output of synthetic diamond reached 15.1 billion in 2013, accounting for more than 90% of global production. China has been exported large amount of synthetic diamonds with low prices, and does not have the advantages in the high-end market. In the United States, the sales unit price of Ireland and the republic of Korea is 5.5 times and 4.1 times the sales of China respectively; In the Japanese market, the sales unit price of synthetic diamond in Ireland, the United States and South Korea is 6 times, five times and 4.8 times of our country.

Industry cluster effect is obvious and oligopoly pattern has formed. Henan province has highest market share of superhard materials, and the combined market share of synthetic diamond industry can reach about 80%. The monopoly pattern has formed. The gross margin of diamond products tend to decline. The gross margin of diamond single crystal compound materials also have downside risks, so the listed company actively extending products industry chain become inevitable choice.

The domestic high grade diamonds are in short supply. The demand ratio of high grade diamonds is about 60%-70% of the total market. At present, the high grade synthetic diamonds account for only about 25%-30%, and compared with 60% of the market demand, the gap is about 30%-35%.

Traditional application field tend to be stabilization. For example, traditional oil drilling and construction stone materials tend to keep stable, while the demand of electronic car fields keeos higher growth.

Photovoltaic (pv) and sapphire industry brings new demand. Photovoltaic (pv) with micron diamond line: global and Chinese demand is expected about 30 billion m and 9 billion m respectively in 2015; In 2016, they will need 50 billion m and 15 billion m respectively. In the sapphire industry, global and China micron diamond wire demand are of 1.33 billion m and 470 million m respectively in 2015.