Prediction of the development trend of the diamond segments industry in 2022

When the Covid-19 broke out in 2020, people judged that 2020 was the most difficult year for the diamond segment industry. When standing at the end of 2021 and looking back on 2020, in fact, 2021 will be more cruel than 2020, and the situation will be more severe.

Covid-19 has become the norm. Due to different national conditions in many countries and regions, each country adopts different ways to deal with the covid-19. This kind of treatment method suitable for the development of the country, when faced with a powerful virus, it seems that there is no other way but to follow the fate. And the diamond segment industry is constantly showing fluctuations with the severity of the epidemic situation. From April to May 2021, a wave of epidemics broke out in India, which directly shut down a large number of stone factories. The final impact was that the diamond segment industry was greatly impacted that month. In 2022, the new crown epidemic presents more possibility of mutation. Especially from April to August next year, the possibility of large-scale epidemics abroad still exists, so the impact of the epidemic in 2022 will continue.



The rise of raw materials, in 2021, many small processing factories began to close. In particular, the price of diamonds has increased three times this year. After the three price increases, the price increase has exceeded 100%. For most diamond segment manufacturers, it is a state of survival. Under the condition that raw materials have risen so much, the price of the segment with low profit in 2020 cannot meet the minimum production cost in 2021. In addition, the price of copper powder, cobalt powder and other commonly used matrix powders has also increased significantly. And as the epidemic continues, there should be a wave of obvious price increases, especially in 2022, the price increase trend is almost unstoppable.

Price increases due to power and production restrictions. In some provinces, China adopts segmented power supply, mainly to save electricity while regulating the natural environment. After the power cut, many raw materials cannot be replenished, which is one of the reasons why raw materials have risen. For segment manufacturers, the previous month was 27 days of production. After the power cut, production can only be done for 20 days or less a month, so the remaining production capacity cannot be utilized, and the factory needs to operate normally. Naturally, the cost will be higher, and the segments produced will be more expensive. In 2022, it is estimated that a new round of power curtailment plans will be planned and announced in advance, which should have a greater impact on factories in some provinces with high electricity consumption in the future.



The long-term operators required for the production of diamond segments also lose their advantages year by year due to the lack of backup force. At present, with the development of the times, it must be put on the agenda to enter the artificial intelligence of segment products. How to reduce the labor intensity of laborers? How to improve the safety of production? How to let technology determine the height of the industry? These problems have become the problems that all diamond segments manufacturers must face in 2022. Whoever can solve them will occupy a huge market share. Otherwise, they will continue to lose their hinterland and eventually get out of the game.

All in all, 2022 is not a good year for business. But it has always been the case, not erupting in silence, dying in silence. Continue to conform to the trend of the times, improve the quality of employees, actively improve processing methods, and seek breakthroughs in brand and technology, so that the enterprise can last for a long time. This is what Linxing Diamond Tools Co., Ltd. has been doing for a long time, and it is also the power source of our struggle.