What do you know about the diamond market? What are the supply and demand for these stones? Do you know that the annual volume for diamonds is eight billion dollars, for diamonds - twelve billion, and for jewelry with them - fifty billion? At the same time, we do not forget that diamond is raw material, diamond is semi-finished product, and jewelry is finished products. However, we will consider this issue in more detail.
Diamond Market - Demand for Luxury Goods
Where to begin? The diamond market is what interests most lovers of various luxury goods (not only works of art, antiques, clothing from famous designers, luxury perfumes). Demand for diamonds is manifested after the satisfaction of a person in basic necessities. Therefore, they are acquired, as a rule, in economically highly developed countries. There are deposits of diamonds in various parts of the globe. By the way, most often in less developed countries.
The hard way of stones
The next point worth mentioning about the diamond market. This applies to the path of stones made each time from their location to falling into the hands of the end user. And this path goes through several stages.
The first is the search, exploration and evaluation of the field. The second is in the extraction of diamonds, in mining and processing. The third is in turning rough diamonds into goods, in sorting and grading. Fourth - in the diamond trade in the primary and secondary markets. Fifth - cut diamonds. Sixth - in the trade. The seventh is in the manufacture of jewelry. Eighth - in the trade of jewelry (wholesale and retail).
Each stage has its own goal. Therefore, the "diamond factory" and should function as a single system.
Stock is limited.
However, do not forget about something else. The diamond market is directly dependent on their resources. But they, alas, are limited. Therefore, there is incredibly strong competition among many countries for the extraction of these resources and the search for their locations.
Recently, significant changes have been taking place in the global diamond market. This is due to the processes of growth of national self-awareness of peoples, the integration of states to solve the problems of eliminating the shadow economy, globalization.
Diamonds are conditionally divided into technical and jewelry. The first are used in rare drill columns, for work in too difficult conditions. The second - by itself, for the manufacture of diamonds.
Mining locations
The global diamond market is directly dependent on several factors. First of all, from the places of their extraction. Today 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 only by a few countries. These are Australia, Namibia, Congo, South Africa, Angola, Canada, Russia and Botswana.
Diamond companies
Let's talk about large firms. The diamond market in the world is primarily known for the companies such as BPH Billiton, Rio Tingo, De Pierce and, of course, ALKOROSA. True, in the international ranking, the latter has recently lost a little. Nevertheless, she managed to maintain a certain potential for development. In general, in the near future we can expect great progress from ALKOROS.
Russia is a strong competitor
And now more specifically about the Russian Federation. The diamond market in Russia is a full participant in this world. Take a look at least for 2011. About thirty million carats of rough diamonds were exported during this period. Well, that’s three billion US dollars. The main importers in Russia are India, Israel and Belgium. Although the Russian Federation purchases diamonds in the UAE or Guinea.
In general, Russia is one of the strongest competitors for many countries. Although ... The ALROSA company noticeably differed during the crisis. Than?..
During the crisis
The diamond market and its types were particularly prominent during this period. Two companies were in the lead at that time - 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 including diamonds sold by illegal miners. Pre-crisis annual production levels ranged from 150 to 160 million carats. In 2008-2009, diamond production was reduced by all world companies. With the exception of ALROSA. Due to certain social obligations, the company was forced to work "out of stock". Today, experts are convinced that pre-crisis indicators can be achieved by 2017. Reduced production volumes must be restored.
New projects
The diamond market and the economy are two closely related things. Consider the main new large projects that should bring the world about 23 million carats of raw materials.
The first is Gacho Kew. It is located in northern Canada. The production potential is about 6 million carats by 2020.
The second is the Karpinsky Tube. Located in the Arkhangelsk region. The project is a subsidiary of ALROSA. The development of production involves about 5 million carats per year.
The third is Bander. 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 also played by second-tier companies. Even those who have the very first experience in diamond mining.
For example, "Mushroom tube." Initially, it was supposed to be sold by the Russian oil company LUKOIL. However, today it is being developed independently.
The annual level of diamond mining in 2016 was able to reach 170 million carats. However, in subsequent years, production will increase slightly. By 2020, it will increase by only another 5 million carats. The fact is that the reserves currently being mined are gradually being depleted. But there are not so many new large projects.
In addition, experts say that even if a new diamond deposit is discovered in the near future, preparatory and exploration work will still take a lot of time. That is, by 2020, the overall picture will not change much.
Development scenarios
The market for diamonds and diamonds, in principle, may differ in more positive indicators in the future. It all depends not only on the production potential of modern leaders. The emergence of new diamond-mining regions also plays a significant role. Great potential for producing large volumes of rough diamonds is the Democratic Republic of the Congo and Zimbabwe. If the political situation stabilizes in each of these countries, they will be able to make a very serious contribution to the diamond market. By 2020, global production could increase to 209 million carats.
The optimistic scenario also implies a large increase in consumer spending, the growth of world GDP at a very fast pace (more than 3.9%). Thus, the demand for rough diamonds could grow by 2020 to 371 million carats.
Although experts are also considering a conservative option for market development. In this case, the largest manufacturers will not be able to bring production to full capacity due to the difficult economic situation and technical reasons. Global diamond mining will remain at its current level for some time. However, it will gradually begin to decline. By 2020, it will reach 127 million carats. However, regardless of the development scenario, the next 10 years, according to experts, the global market expects a shortage of rough diamonds. The difference will be felt only in volumes.
Today, the gap between supply and demand for diamonds is widening. By 2020, the diamond shortage could reach 72 million carats. And this is half of the world's production.
One of the main participants in the global diamond market is Russia. More and more stones are exported annually abroad. Exports are constantly increasing. Most diamonds from Russia are acquired by Belgium. It is followed by Israel (every year the country buys rough diamonds worth about $ 300 million). India also acquires many stones.
By the way, Russia itself buys diamonds abroad. The volume of Russian imports is also increasing annually. Stones are purchased in Guinea, Belgium, UAE.
Most diamonds in Russia are mined by ALROSA (more than 90% of the total). According to the estimates of this company, by 2020 the consumption of diamond products in the world will reach $ 128 million. It mainly falls on 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”, “Almazyuvelireksport”. The largest Russian producer and exporter of finished products from diamonds (diamonds) is Smolensk PO Crystal. Acquires Kristall software 60% of diamonds from ALROSA, 4% of rough diamonds from De Pierce, the rest of the stones in the secondary market (including international online auctions).
So to summarize. There is probably no such person on earth who would not be delighted with the beauty and brilliance of diamonds. Of course, because it is a real luxury! Jewelry with diamonds has gained enormous popularity, despite the fact that not everyone can afford them. However, the resources of stones in the world are limited. Recently, the global diamond market has undergone many significant changes. Their nature was influenced by various processes - globalization, the combined actions of countries in the fight against terrorism and the shadow economy, the strengthening and growth of national self-awareness, etc. Thus, a new look of the diamond market is formed. The leadership in the diamond industry belongs to companies that implement advanced marketing methods, integrating their activities vertically.