Demand for rough diamonds expected to rise in coming years
The market for rough stones is expected to expand further in 2012 and the next several years, as buyers in India and China are projected to increase their purchases of diamonds by a significant margin, Mineweb reported.
According to the news source, the world's biggest diamond cutting and polishing center in Surat, India, is expected to see their revenue increase by a significant margin in the coming years. Traders from this region have recently teamed up with representatives and mine consultants from 15 of the largest diamond firms across the globe.
This move came after Russian diamond major Alrosa announced that it was looking to sell roughly 70 percent of its diamond production through long-term contracts, something that will likely benefit Indian companies that are looking to increase their holdings.
Companies from across Europe and Asia are looking to participate in a reorganization of the market in India, and increase their stake and mine production reporting numbers following the sales by Alrosa.
"Alrosa accounts for about 30 percent of the world diamond output. It sells about 60% of its diamond production through long term contracts and 10 percent at competitive trades, including auctions. Its annual rough diamond sales are around $5 billion. This year, the company has decided to raise its sales to 70 percent and most Indian diamond trading firms are eager to engage in the contracts,'' Dakshesh Mehta, co-promoter of a leading diamond export house, told Mineweb.
Bloomberg reported that the potential sales by Alrosa could lead to an further increase in the value of the commodity, as the price of these gems is set for a fourth year of consecutive gains.