Moscow: Since the beginning of 2014 till the end of the first half rough diamond prices rose by an average of 6-7% at the global market. This estimate is stipulated in the recent report of ALROSA for the second quarter, cited by Finmarket.ru.
Majority of market players have observed the negative trend shifted to stabilization or growth of prices in late 2013, creating favorable conditions for further development of the market, the report said. Favorable environment of the global diamond market retained during the second quarter of 2014.
ALROSA’s report indicates that market players noted optimism at the US diamond market following the results of Las Vegas jewellery show in June, as well as strong demand in China and a recovery of demand in India.
According to the company’s expectations, the impact of the positive factors will retain in the foreseeable future.
Following the results of the first quarter ALROSA noted a 4% rise in diamond prices. Meanwhile ALROSA had forecasted a 5% increase in prices by the end of 2014.
Prices for ALROSA’s diamond production might grow by 6% (up to $190 per carat) in case the company is be subject to a new round of sanctions from the EU, USA and Japan, and has to reorient supplies to focus on Asia – this estimate was expressed by Morgan Stanley in a recent review of the possible impact of sanctions on trade flows in the mining and metallurgical industry. Each $10 accretion of price per carat brings ALROSA a 13 per cent increase in net profit, according to calculations of the investment bank.