Rough diamond prices have now stabilised after falling from the highs reached in June, according to the newly-published Petra Diamonds interim trading update.
Petra is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. “Its direct observation is that the market stabilised in December 2011 and, going into 2012, the company expects this trend to continue,” said CEO Johan Dippenaar.
“This is demonstrated by the high level of interest in Petra's first tender of the year – which is currently underway – as well as anecdotal evidence and feedback from Petra's client base concerning current global demand for rough diamonds,” the update added.
“In the short term, global economic conditions may continue to cause some volatility in rough diamond pricing, but it should be noted that demand from Asia and other emerging markets is continuing to grow strongly and is lessening reliance on the major US market,” it said.
“The long-term fundamentals of the industry are compelling; whilst supply is forecast to remain flat or may decline, demand for diamonds is expected to continue to rise in both established and new markets as wealth and consumer spending increase,” Petra predicted.