Synthetic diamond –Widely used superhard material. Diamond is the high-end synthetic material with excellent physical property, high hardness and heat conductivity. There’re many synthetic methods. The main method of industrial production synthetic diamond is the static high temperature and high pressure. Synthetic diamond is used in mechanics, thermotics, optics and electrics, but the great demand is to be the mechanical processing materials.

The present situation of the world synthetic diamond industry: The output of synthetic diamond in our country is the first in the world, accounting for 90% of global capacity. Synthetic diamond industry develops rapidly, the country of the largest output of synthetic diamond taking the place of America. The main reason resulting in this phenomenon is that we have the cubic press with proprietary intellectual property rights and its industrial art is gradually mature, bringing clear cost advantage. Although the output of synthetic diamond abroad is lower than that of our country enterprises, the product quality is better. High-end products advantages are clear due to the brand effect. Foreign enterprises of synthetic diamond monopolize high-end market.

Current situation of Chinese synthetic diamond: The output of synthetic diamond in our country is ten billion carats annually, compound growth rate 21.45% per year. The export volume of our country synthetic diamond increases 14 times in recent ten years. America is the largest export market of Chinese synthetic diamond. Although the export is large, the unit price is always in the low level of the world. The synthetic diamond industry in our country has established the oligarch patterns of competition, Zhongnan Diamond, Huanghe Whilwind and Yu Diamond Company accounting for more than 80% share of the market. Synthetic diamond industry is the key supporting industry in the new materials industry development planning of the 12 th five-year plan.

Downstream demand analysis: The market scale of global diamond tools is more than 20 billion dollars. The unit price of synthetic diamond is declining, but the industry overall scale is still keeping high-speed growth. The main downstream industries using synthetic diamond are the manufacturing, construction industry and exploration mining. Their compound growth rate of fixed investments is 32%, 20% and 30% respectively. The fixed investments of downstream industries will continue to keep good increase, which brings strong support for the rapid developments of synthetic diamond industry.

Analysis of profitability: The material cost is the larger proportion in the cost of synthetic diamond to more or less 64%. The main factors are the metal powder, anvil service life and graphite powder that affect the cost of synthetic diamond. It keeps the high rate of gross profit in the trend of falling price.

Industry development prospect: Application breakthough of PV industry will bring huge market. The potential newly increased market of diamond wire is four billion every year. Traditional materials substitution brings largely increase space, almost one billion increase space of synthetic diamond market scale replaced by the silicon carbide grinding material.