A Chinese manufacturer of lab-grown diamonds reported a sharp jump in profits in the first half of the year, driven by a rapid shift in global consumer preferences toward cheaper synthetic stones at the expense of natural diamonds.

This shift has cast a shadow over major natural diamond producers, with pressures forcing De Beers to suspend production for two years at its Venetia mine, South Africa's largest diamond mine, as part of a cost-cutting plan, warning that it faces "prolonged difficult conditions as the diamond industry continues to evolve."

In recent years, the growing prevalence of lab-grown diamonds has curbed demand for natural stones.

Fri, 12 2026

According to a report released at an industry forum held last December in Henan Province, central China, the global lab-grown diamond market is valued at about 127.2 billion yuan ($18.8 billion), with the United States being the largest demand market for these stones, per the South China Morning Post.

It noted that China continues to strengthen its dominance in this fast-growing sector, with expectations that by 2030 it will account for nearly two-thirds of global lab-grown diamond production, with most production capacity concentrated in Henan Province, according to Chinese state media.

Power Diamond, one of the largest producers in Henan, is among the biggest beneficiaries of this shift.

The company said in a filing to the Shenzhen Stock Exchange on July 10 that it expects net profit attributable to shareholders in the first half of 2026 to range between 80 million and 93 million yuan, roughly triple the profit recorded in the same period last year.

The company attributed this performance to advances in diamond manufacturing technologies, along with strong export growth, and it expects revenue to rise year-on-year to about 450 million yuan, nearly double the level in the corresponding period last year.

Sat, 06 2026

In contrast, Huanghe Whirlwind, a superhard material producer based in Henan Province, forecast a net loss of 220 million yuan for the first half of 2026, compared with a loss of about 300 million yuan a year earlier, indicating an improvement in its financial results.

The company said in a filing to the Shanghai Stock Exchange on Tuesday that its lab-grown diamond business continues to show steady improvement.

At the same time, natural diamond prices continued to decline, dropping about 30% over the past three years with no signs of recovery, according to the Zimnisky Rough Diamond Index, which tracks unpolished rough diamond prices.