Diamond market overview
Traders reported overall good demand for polished in the wholesale market. Expectations are positive for jewellery sales during the Chinese New Year festivities starting February 16 when Chinese consumers splurge on gifts. A healthy rebound in sales in China from luxury goods groups, such as LVMH, is underpinning the positive sentiment. In the broader market, the main polishedprices index traded in narrow ranges, opening at 117.50 on Friday, from Monday’s opening at 117.11.
The rough market has seen a healthy rebound since the start of the year, highlighted by strong premiums in the secondary market, following the January sales of De Beers and Alrosa. De Beers announced it sold $665 million in January (versus $729 million in Janaury 2017). Despite the fall in sales compared to the same month last year, De Beers was upbeat, saying: “Following positive early signs for diamond jewellery sales over the holiday season in the US, the need for the industry to restock led to increasing demand for our rough diamonds in the first sales cycle of 2018”.
Corporate and events
Global miner Anglo American saw its output climb 5% last year thanks mainly to its diamond and iron ore divisions, though copper production remained flat, mining.com reported. The company said output at its diamond unit, De Beers, climbed 22% compared with the previous year to 33.5 million carats, as its Gahcho Kué mine reached full production. Gahcho Kué, Canada’s newest diamond mine and the world’s largest in the last 13 years, is a joint venture between De Beers and Mountain Province Diamonds. It officially opened in September 2016, achieving commercial production last March, the mining.com report said.
Petra Diamonds Ltd. tumbled in London after the African miner cut its forecast for the number of gems it will mine this year and said a stronger South African rand would hurt profit, Bloomberg.com reported. Petra said its 2018 financial-year earnings would be as much as 15 percent lower than the analysts expect after the rand strengthened against the U.S. dollar, making the cost of mining more expensive. The company also said it will produce fewer diamonds as it focuses on recovering larger, more expensive stones, the Bloomberg report said.
The first India Diamond Week will be held at the Bharat Diamond Bourse (BDB) in Mumbai, India, from April 25-27, BDB said in a statement. The event will see 200-250 Indian companies displaying polished diamonds to buyers from across the world, it said.