In an attempt to get a broader picture of the current diamond market before 2010 Rough&Polished turned to experts asking them to give their opinions about the latest developments in the industry.
Moti Ganz, President of Israel Diamond Manufacturers Association Ltd and Chairman of MOTIGANZ Diamond Group (a DTC sightholder):
How do you evaluate the situation on the market? When could we expect its recovery?
I think it depends on how the Christmas season will be in the United States this year. So we have to wait another three weeks after the Thanksgiving and after that for Christmas.
If America will move the right way, so the market will start to move the right way. If the recession will stay for another year in United States, so it will take time.
But now we know what the bottom is. We are in the bottom and I believe that it will be normal for the rough situation and rough will not jump or come in a big quality to the market, so the market will settle and business will be okay in 2010.
Are you satisfied with the activity of De Beers and ALROSA? Do you think their prices are fair?
If we speak about ALROSA during the last year, they behaved the best way on the market. The best, because they didn’t sell anything. Now they start selling, so we have to see how the market will react to the new prices of ALROSA.
But if we speak about the period from March to September, “number one” in behaving well on the market was ALROSA and it is very good to know that a big company like ALROSA takes care about the market. If we say they are only 20-25 percent of the market but they speak about the market like they control 100 percent of the market and we have to salute to ALROSA the way they behave in the last six months.
What would be the best steps to improve the situation on the whole market during the next year?
I think today is not the time to make this decision. We have to wait for February to see what will happen with bankruptcy in the United States, and what will happen with the year-end sales. We have to wait for decision until February and this is the right time to make the decision about how to move in 2010.
Alex Shishlo, Editor of the Rough&Polished European Bureau in Brussels
