16 Sep 2019
DiamondWorld Directory
Home |
Archival
Home
“Outlook for Diamond Market Positive”
The head of the emerging mining company shares his views on the prospects of different segments of the pipeline with M.D. Dewani and explains why he is confident of a positive future.
By: Johan Dippennar CEO, Petra Diamonds
|
Jan 13 2011 5:29PM
|
Reference: 5650  

DecreaseIncrease

“The outlook for the diamond market is positive with a significant supply-gap anticipated in the coming years, as demand continues apace in the emerging markets,” says Johan Dippennar, CEO of Petra Diamonds which is emerging as a new producer and supplier of rough diamonds. With this perspective, Petra plans to steadily increase its rough production and develop the company’s stature as an important supplier to the world market.

The CEO shares some of his views about current and anticipated market trends.

The US Market:

The diamond market and rough diamond prices (if we are referring to the rough prices in the US market, then we should specify what quality of rough, not sure if there is much rough business in US other than the large sizes), he says, have already recovered strongly in the important US market in 2009-10, as evidenced by the steadily increasing volume and value of polished diamonds (sounds a bit different from ground realities)and improved sales reported there by leading diamond retailers.

Festive Season Expectations:
As the diamond market now enters the pre-festive season, Dippenaar adds, expectations are for a continued improvement that could end with robust retail sales in the fourth quarter.

Production Trends:
He believes that though production of rough diamonds according to K.P. data, declined 25 per cent to 125 million carats (worth US$ 8.6 billion, giving a global average value of US$ 69 per carat), the supply is expected to be considerably higher in 2010 though this might not reach the previous high of 168 million carats, valued at US$ 11.9 billion in 2007. He expects global production may rise to around 140 million carats (valued at US$ 11bn) by 2011 and might then remain flat for some years, before starting to decline again.

Supply side constraints, according to him, are mainly due to the fact that the world’s largest diamond mines are now past then peak, and can no longer be operated at previous levels of production. Besides, in some cases, open-pit operations have to move underground. This may naturally limit the volumes which can be extracted from the ore-body.

Whilst some underground mines may now be coming on stream, in the next few years, current estimates, according to him do not forecast significant new supply to counter-act the present declining trend.

First | Previous | 1 | 2 | Next | Last | All

Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Sort by: 
 Newest 
 | 
 | 
 | 
 Agree 
 | 
Robert
(Los Angeles)
How does the giant cache found in Russia affect my decision to buy now?
Mitchell
(Brussels)
nice to see the positive comments about diamond business.
Advertisement
HouseAd_Trade Fair
Search News by City
Advertisement
Kosher 23460
Advertisement
HouseAd_Trade Fair
Recent Issue
2019
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
Spotted: Who Wore What (August 2018)
Pictures: 4
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 17519
GJEPC Chairman Interview
Views: 16210
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 23136
Promo for IJ Awards 2012 at NDTV Profit
Views: 36153
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 39695
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 13576
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 37659
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 35459
Advertisement
KGK_Antwepr
Advertisement
Mohra India
Member of:
Supporter of: