The world diamond market

What do you know about the diamond market? What is the supply and demand for these stones? Did you know that the annual volume of diamonds is eight billion dollars, the diamonds are twelve billion, and the jewelery with them is fifty billion? At the same time, we do not forget that the diamond is raw materials, the diamond is a semi-finished product, and the jewelry is finished products. However, consider this issue in some detail.

The diamond market is the demand for luxury goods

Where to begin? The diamond market is something that most of all interests lovers of various luxury items (not only works of art, antiques, clothes from famous designers, elite perfumery). The demand for diamonds is manifested after the satisfaction of the person in the needs of the first necessity. Therefore, they acquire them, as a rule, in economically highly developed countries. There are deposits of diamonds in various parts of the world. By the way, most often in the territory of less developed countries.

Complex path of stones

The next point that should be said about the diamond market. This refers to the way stones are made each time from their location before falling into the hands of the end user. And this path goes through several stages.

The first is the prospecting, exploration and evaluation of the deposit. The second - in the extraction of diamonds, in extraction and enrichment. The third - in the transformation into a commodity of rough diamonds, in sorting and evaluation. The fourth - in the trade of rough diamonds in the primary and secondary markets. The fifth - in cutting diamonds. The sixth - in trade. The seventh - in the manufacture of jewelry. Eighth - in the trade already jewelry (wholesale and retail).

Each stage has its own goal. Therefore, the "diamond plant" should function as a single system.

Inventories are limited

However, do not forget about something else. The diamond market depends directly on their resources. And they, alas, are limited. Therefore, there is an incredibly persistent competition among many countries for the extraction of these resources and the search for their locations.

Lately, there have been significant changes in the global diamond market. This is due to the processes of the growth of national self-consciousness of peoples, the integration of states to solve the problems of eliminating the shadow economy, globalization.

The diamonds are divided roughly into technical and jewelry. The first ones are used in rare drilling columns, for working under too severe conditions. The second - by itself, for making diamonds.

Places of production

The world diamond market directly depends on several factors. First of all from the places of their extraction. To date, they are mined in more than twenty-six countries. But on all continents the search for their deposits does not cease. The main volume of production is given by only a few countries. These are Australia, Namibia, Congo, South Africa, Angola, Canada, Russia and Botswana.

Diamond Companies

Let's talk about big companies. The diamond market in the world is known primarily for the companies "BHP Billiton", "Rio Tingo", "De Pierce" and, of course, "ALKOROSA". However, in the international rating the latter recently lost a little. Nevertheless, she managed to maintain a certain potential for development. In general, in the near future from "ALKOROS" you can expect great progress.

Russia is a strong competitor

And now more specifically about the RF. The diamond market in Russia is a full participant in this world. Look at least for 2011. During this period, about thirty million carats of raw rough diamonds were exported. Well, this is three billion US dollars. The main importers in Russia are India, Israel and Belgium. Although Russia buys diamonds in the UAE or Guinea.

In general, Russia is one of the strongest competitors for many countries. Although ... The company "ALROSA" during the crisis markedly distinguished itself. Than?..

During the crisis

The diamond market and its types in this period were particularly distinguished. Leading at this time were two companies - De Pierce (South Africa), and ALROSA. Thanks to them in 2011, 133 million carats of rough diamonds were mined. The total amount was 12.3 billion US dollars. Not taking into account the diamonds sold by illegal miners. Pre-crisis annual production levels ranged from 150 to 160 million carats. In 2008-2009, the extraction of rough diamonds was reduced by all world companies. With the exception of ALROSA. Due to certain social obligations, the company was forced to work "in stock". To date, experts are convinced that pre-crisis indicators will be achieved by 2017. Reduced production volumes should be restored.

New projects

The diamond market and the economy are two closely related things. Consider the major new major projects, which should bring the world about 23 million carats of raw materials.

The first one is "Gacho Kew". It is located in the north of Canada. The production potential is about 6 million carats by 2020.

The second - "Karpinsky tube". It is located in the Arkhangelsk region. The project is a subsidiary of ALROSA. The development of mining involves about 5 million carats per year.

The third is Bander. It is located in India. The production forecast is about 5 million carats per year.

Second-tier companies

The diamond market in the world economy is characterized by "jumping" indicators. And a significant role in its development is played also by the companies of the "second echelon". Even those who have the very first experience in diamond mining.

For example, "The pipe named Griba." Initially, it was to be sold by the Russian oil company LUKOIL. However, today it is developed by it independently.

The annual level of diamond mining in 2016 was able to reach 170 million carats. However, in subsequent years, production will grow insignificantly. By 2020, it will increase by only another 5 million carats. The fact is that the reserves that are currently in development are gradually depleted. But there are not so many new big projects.

In addition, experts say that even if a new diamond deposit is discovered in the near future, preparatory and geological exploration will still take a long time. That is, by 2020 the overall picture will not change much.

Development scenarios

The market of diamonds and diamonds, in principle, can differ and more positive indicators in the future. Everything depends not only on the potential of extraction of modern leaders. An important role is also played by the emergence of new diamond-mining regions. The Democratic Republic of the Congo and Zimbabwe have great potential for producing large volumes of rough diamonds. If in each of these countries the political situation is stabilized, they can make a very serious contribution to the diamond market. By 2020, world production could increase to 209 million carats.

The optimistic scenario also assumes a large increase in consumer spending, an increase in world GDP at a very rapid rate (more than 3.9%). Thus, the demand for raw diamonds could rise to 371 million carats by 2020.

Although experts are also considering a conservative version of market development. In this case, the largest producers will not be able to bring production to full capacity due to the difficult economic situation and technical reasons. World diamond production will remain at the current level for a while. However, it will gradually decline. By 2020, it will reach 127 million carats. However, regardless of the scenario of development, the next 10 years, according to experts, the world market expects a shortage of rough diamonds. The difference will be felt only in volumes.

To date, the gap between demand and supply for diamonds is growing. By 2020, the diamond deficit could reach 72 million carats. And this is half the world's catch.

One of the main players in the global diamond market is Russia. Annually more and more stones are exported abroad. Export is constantly increasing. Most of all diamonds from Russia are acquired by Belgium. It is followed by Israel (every year the country purchases rough diamonds worth about $ 300 million). A lot of stones are also acquired by India.

By the way, Russia itself buys diamonds abroad. The volume of Russian imports is also increasing every year. The stones are purchased in Guinea, Belgium, UAE.

Most of all diamonds in Russia are produced by ALROSA (more than 90% of the total). According to the estimates of this company by 2020, the consumption of products with diamonds in the world will reach $ 128 million. Mainly it will have to the USA (45%), China (26%), India (20%), Japan (10%).

Several companies are licensed to export diamonds from Russia. These are ALROSA, ALROSA-Nyurba, Severalmaz, Diamonds of Anabar, Nizhne-Lenskoye, Uralmaz, Almazyuvelirexport. The largest Russian producer and exporter of finished products from diamonds (diamonds) is Smolensk Kristall. Acquires Crystal software with 60% of diamonds from ALROSA, 4% of rough diamonds from De Piers, and the rest of the stones in the secondary market (including international online auctions).

So, let's sum up. Probably, there is no such person on earth who would not be delighted with the beauty and brilliance of diamonds. Of course, this is real luxury! Jewelry with diamonds won frenzied popularity, despite the fact that not everyone can afford them. However, the resources of stones in the world are limited. Lately, there have been a lot of significant changes in the world diamond market. Their nature was influenced by various processes - globalization, united actions of countries in the fight against terrorism and shadow economy, strengthening and growth of national consciousness, etc. Thus, a new image of the diamond market is being formed. Leadership in the diamond industry belongs to companies that implement advanced marketing methods, integrating their activities vertically.