Global rough diamond prices increased 4%: KP

Surat: Amid worries of rough diamond prices going up and diamond manufacturers in Surat reeling under severe recession, the Kimberley Process (KP), global watchdog of the diamond industry has stated that the average prices of roughs increased by almost 4% in 2018 with diamonds mined in Namibia fetching an average price of $469 per carat.

KP has released a global diamond report stating that the diamond production fell to 148.2 million carats in 2018, a decline of less than 2% from the 150.9 million carats recovered in 2017. Global diamond production was worth $14.47 billion in 2018 compared to $14.12 billion in 2017, as the average price per carat rose to $97.5 from $93.6.

Industry experts said that the average price of rough diamonds have increased by almost 20%. However, in the secondary diamond markets in Surat and Mumbai, the prices of rough diamonds have increased between 25%-30% in the last one year.

Diamond industry analyst, Aniruddha Lidbide said, “According to the Kimberley Process data, the average price of rough diamonds, which is the main raw material for Indian diamond industry, has increased by almost 5%. This means that the price difference could be in the range of 20%-25% when the rough diamonds reaches to the end consumers—diamond manufacturers in Surat”

Lidbide added, “The increasing prices has broken the spine of the diamond manufacturers in Surat. On the contrary, the polished diamond prices have declined by 30% in the last one year. There is a a complete mismatch in the industry as far as the prices are concerned”

President of Surat Diamond Association (SDA), Babu Gujarati said, “Almost 30% of the diamond units in the industry are yet to reopen after summer vacation. The diamond unit owners are clearing their old inventories to generate liquidity. It is time for the mining companies to reduce prices, otherwise the industry will have a huge impact in the coming months.”

Recently, US-based Rapaport group had urged the Indian diamond industry to stop buy rough diamonds following the high prices and increased inventory of polished diamonds.

Kirti Shah, diamond exporter said, “We are on the vacation from the last four months. Not a single parcel has been dispatched overseas as we are getting very low prices of polished diamonds. Our buyers are asking for the polished diamonds at discounted rates.”

Courtesy: Times Of India