Ari Epstein, CEO of Antwerp World Diamond Centre (AWDC), and Nishit Parikh, President of AWDC shared their views of the current situation in the diamond market with Rough&Polished.
ARI EPSTEIN:
In what way is the Belgian diamond industry affected by the crisis in the euro zone?
The global diamond industry is very important to Antwerp like Antwerp is for the global industry. So it is not that much affected by regional crises.
We export to all countries in the world, we work with the BRIC countries, and we work with Africa. So for us a local, regional crisis does not have any immediate effect.
Of course, we need to look at the world and there are some places that are still doing very well and diamonds are consumed not only as consumption product but also regarded as an investment today.
What kind of measures does the Antwerp World Diamond Centre take to improve the situation in the diamond market?
The Antwerp World Diamond Center actually creates more transparency. More transparency means more financing, more access to capital. It is a very capital intensive business.
We have good cooperation with the Industrial and Commercial Bank of China going on. So we have some initiatives that create more liquidity, hence create more demand for the diamond industry.
Do you expect any sharp drop in prices for rough and polished diamonds?
We see some small corrections from time to time, but serious corrections - I don’t think so.
What will happen to polished diamonds production in 2012 - will it fall, rise or stay flat?
I think it is going to stabilize and rise a little bit, but in the long term there will always be shortage for diamonds.
NISHIT PARIKH:
In your opinion, what will be the consequences of the Oppenheimer family’s withdrawal from the diamond business?
That is a very difficult question to answer. I think it is something we will have to see with time but Anglo American has been in the diamond business for 75 years and is not going to do something that will destroy the business. They bought the company to make money and not to destroy the business. I don’t believe there would be much effect.
Belgium's total diamond turnover for 2011 totaled US$56.5 billion, almost 1.5 times exceeding the turnover in 2010. Will you be able to stay at this level in 2012?
Last year was a fantastic year. I doubt, I don’t believe. I think that seven month of 2011 were probably the best time in the diamond business. At least, in the last 25 years that I have been in the business it’s the best time I have seen.
What is your medium- and long-term outlook for the Antwerp diamond market?
We will have to see the effects of the De Beers moving to Botswana, but otherwise I think Antwerp has a strong future. We need to structure it in the right way. Competition is always good for everyone.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
