The De Beers Group expects an increase in sales of diamonds in the two largest world markets, which will offset the weakening demand in India, caused by the volatility of the purchasing power of the population, reports Bloomberg.
"Sales growth will be sustainable, mainly thanks to the US and China," Philippe Mellier, CEO of the group, said last week in an interview for The Pulse on Bloomberg. According to him, the consumption of diamonds will grow by 4-4.5% compared to the growth of 3% in 2013.
De Beers believes that the growth in demand in the two largest world markets will help balance the weakening of demand in India, where the volatility of the rupee exchange rate weakens the purchasing power of consumers.
De Beers announced an increase in diamond production by 12% in 2013 to 31.2 million carats.
Mellier said it is still too early to say whether De Beers is planning to raise prices for rough diamonds this year. The company will study the demand before making the appropriate decision.
In recent years, De Beers has pursued a fairly aggressive pricing policy, leading to a reduction in premiums between the sale price of diamond boxes and the price of the secondary diamond market.
Last year, prices for rough diamonds rose 10%, as the US economy recovers and sales of diamonds in China grow. According to WWW International Diamond Consultants Ltd, over the past five years, diamond prices have more than doubled.