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11:28 | Aug 19 | 2014

Global Diamond Prices rose by 7.6%

 Since the beginning of 2014 up to the end of the 1st half of the year the prices for rough diamonds on the world market rose by 6-7% on the average. This assessment is contained in the report of ALROSA for 2nd quarter of this year, reports Finmarket.ru.

The negative trend among the majority of the market participants changed into stabilization or increase in prices in late 2013, creating favorable conditions for  further development of the market, as it follows from the report. During the 2nd quarter of 2014 there was favorable state of the world diamond market.

The report of ALROSA indicates that the market participants note the optimism in the diamond market of the USA following the results of jewelry show in June in Las Vegas, as well as strong demand in China and a recovery in demand in India.

According to the Company, the impact of the positive factors on the market in the foreseeable future will remain unchanged.

According to the results of the 1st quarter ALROSA noted a rise in prices for diamonds at a rate of 4%. By the end of 2014, ALROSA forecasts a 5-percent increase in prices.

ALROSA diamond prices could rise by 6% (up to $ 190 per carat) in the event that the Company becomes an object of a new round of sanctions from the EU, USA and Japan, and reorients its deliveries to Asia - this assessment was expressed by Morgan Stanley in a recent review of the possible impact of sanctions on trade flows in the mining and metallurgical industry. Every $ 10 per carat will make "ALROSA" 13 per cent increase in net profit, calculated the investment bank.

 

YSIA