ALROSA’s CEO believes that diamond market supply will eventually decrease, which may lead to double-digit growth in diamond prices in the coming years.
"We are already seeing a gradual normalization of reserves in all segments of the diamond pipeline," said ALROSA CEO Pavel Marinychev in an interview with TASS news agency. "So, double-digit price growth is quite possible in the coming years, primarily for the most popular and scarce large stones."
He added that currently, global diamond production volumes are already starting to decline. According to ALROSA, in 2025 they will amount to 95 - 105 million carats, which is 20% - 30% lower than in 2017 - 2019. Over time, this may lead to a shift in the supply and demand balance, tilting it towards a deficit, which will support prices.
Meanwhile, at the moment, the diamond segment is “taking a short break, necessary to adapt to the new tariff realities,” but in the future, the market will continue to normalize, Marinychev noted.
“Signs of a market reversal appeared at the beginning of this year, and diamond prices today are less volatile than last year or the year before… As the intensity of market forces decreases, the situation will continue to normalize,” he explained.
According to him, the situation in the diamond jewellery market has improved in recent years compared to pre-pandemic levels, and the volume of this market, according to ALROSA, stands at $82 - $84 billion, from $76 - $78 billion in 2018 - 2019.
Theodor Lisovoy, Managing Editor, Rough&Polished
