Analysis of the prospect of artificial diamond market in China

Lead: The synthetic diamond industry is still in the growth stage as a whole. The long-term driving force of the industry demand lies in the development and utilization of performance and the improvement of permeability. In the future, the market space of micro-powder, composite sheets and products is broad.

　　 First, the artificial diamond is located in the middle of the industrial chain. The industry is still in the long-term. The synthetic diamond is one of the materials with the highest hardness and the highest thermal conductivity in nature. It is chemically stable and has good acid and alkali resistance at room temperature. Widely used in traditional fields such as stone building materials, machinery and automobiles, drilling and mining, as well as emerging fields such as semiconductors, electronics and aerospace. The artificial diamond is located in the middle of the industrial chain, and the industry as a whole is still in its long-term. As a new material of “seven emerging industries”, while receiving policy support, downstream demand industries have also benefited from policy encouragement, and there is huge room for future development of the industry.

Second, the three leading products to see the industry: single crystal, micro-powder, composite film

The three leading products in the synthetic diamond industry are diamond single crystal, diamond micropowder and polycrystalline diamond. Yu diamond is mainly located in single crystal and micro powder. The Yellow River cyclone is mainly positioned to produce single crystal and polycrystalline. Quartet is mainly positioned to produce polycrystalline. Composite sheet.

(1) Single crystal: the world's largest production base, three-legged has been formed, and production capacity growth has slowed down. China's diamond single crystals account for more than 90% of the global market share. The pattern of Zhongnan Diamond, Yellow River Cyclone and Yu Diamond has formed. The total of the three is 64%, and the growth rate of single crystal capacity will be 16%-17%. Mainly due to the decline in downstream demand growth rate of 15%.

(2) Micronized powder: The global market has huge space, and Yu Diamond is expected to rise to become the global leader. In 2011, the global demand for micronized powder is 5 billion carats, China produces 4 billion carats, and foreign countries produce 1 billion carats. The future demand growth rate is about 20%. The annual production capacity of Yu Diamond's micropowders can reach 1 billion carats, which is expected to rise to Industry leader.

(3) Composite film: The future development focuses on composite sheets for petroleum and cutting tools, and Sifang will benefit first. In 2011, the global composite film market capacity was 30 billion yuan, and the future demand growth rate was 20%. The advantages of composite sheets for petroleum and cutting tools in terms of market capacity, growth rate and profitability are outstanding, and are the key directions for future development. As a leading company in the field of polycrystalline diamonds, Sifangda will benefit from the growth of demand and the high gross profit margin in the segment.

Third, the driving force of demand growth: performance development and utilization and penetration rate improvement

There is still a large excavation space for synthetic diamond demand: (1) Compared with the performance advantages of cemented carbide, the diamond permeability still has a large room for improvement. At present, the penetration rate in the field of drilling and mining is 60%, and the ceramic is 50%. 20% stone processing and 10% lathe tools. (2) In addition to superhardness, research on thermal conductivity, photoelectricity and other properties with significant advantages over traditional materials is deepening, and new application fields based on these properties are expected to expand in the future.

Fourth, the decisive factors of profit: equipment technology improvement and product structure upgrade

　　 (1) The cost reduction of superior enterprises is greater than the marginal cost of the industry to ensure stable profitability. Enterprises with scale, technology and equipment advantages in the industry can continue to make technological transformation and upgrades and new equipment, which can reduce the cost of enterprises more than the marginal cost of the industry, thus ensuring relatively stable profitability. Typical representatives are the Yellow River Cyclone and Yu Diamond. When the demand growth rate is lower than the capacity growth rate, the industry concentration will increase, and the relative advantages of leading enterprises in the industry will become more obvious. (2) Synthetic equipment is an important factor affecting the single production, synthesis time, high grade rate and conversion rate of synthetic diamond. The upgrade of diamond product structure can enhance the profitability of the industry.

V. Summary

The synthetic diamond industry as a whole is still in the growth stage. The long-term driving force of the industry demand lies in the development and utilization of performance and the improvement of permeability. In the future, the market space of micro-powder, composite sheets and products is broad.