What do you know about the diamond market? What is the supply and demand for these stones? Did you know that the annual volume of diamonds is eight billion dollars, diamonds - twelve billion, and jewelry with them - fifty billion? At the same time, we do not forget that a diamond is a raw material, a diamond is a semi-finished product, and jewelry is a finished product. However, let's take a closer look at this issue.
Diamond market - demand for luxury goods
Where to start? The diamond market is what most of all interests lovers of various luxury goods (not only works of art, antiques, clothes from famous designers, luxury perfumes). The demand for diamonds is manifested after the satisfaction of a person in the needs of the first 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 difficult path of stones
The next thing to say about the diamond market. This applies to the way stones are made every time from their location to falling into the hands of the final consumer. And this path goesseveral steps.
The first is to find, explore and evaluate the deposit. The second is in the extraction of diamonds, in mining and enrichment. The third is in the commodification of rough diamonds, sorting and evaluation. The fourth is in the trade of rough diamonds in the primary and secondary markets. The fifth is in diamond cutting. The sixth is in trade. The seventh is in the manufacture of jewelry. Eighth - in the trade already in jewelry (wholesale and retail).
Each stage has its own purpose. Therefore, the "diamond factory" should function as a single system.
Stocks are limited
However, one more thing should not be forgotten. The diamond market depends directly on their resources. But, alas, they are limited. Therefore, there is an incredibly strong competition among many countries for the extraction of these resources and the search for their locations.
Recently, the global diamond market has undergone significant changes. This is due to the processes of growth of the national self-consciousness 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 former are used in rare drill columns, for work in too difficult conditions. The second - of course, for the manufacture of diamonds.
Locations
The global diamond market directly depends on several factors. First of all, from the places of their production. To date, they are mined in more than twenty-six countries. But on all continentsceases to be searched for their deposits. Only a few countries provide the main volume of production. These are Australia, Namibia, Congo, South Africa, Angola, Canada, Russia and Botswana.
Diamond Companies
Let's talk about big companies. The diamond market in the world is known primarily for the companies BC Billiton, Rio Tingo, De Pierce and, of course, ALKOROSA. True, the latter has recently lost a little in the international ranking. Nevertheless, it managed to maintain a certain potential for development. In general, we can expect big advances from ALKOROS in the near future.
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. Just take a look at 2011. About thirty million carats of rough rough diamonds were exported during this period. Well, this is three billion US dollars. The main importers in Russia are India, Israel and Belgium. Although the Russian Federation also buys diamonds in the UAE or Guinea.
In general, Russia is one of the strongest competitors for many countries. Although… ALROSA made a notable difference during the crisis. What?..
During the Crisis
The diamond market and its types stood out during this period. At that time, two companies were in the lead - De Pierce (South Africa), and ALROSA. Thanks to them, 133 million carats of rough diamonds were mined in 2011. The total amount was 12.3 billion US dollars. Excluding diamonds sold by illegal miners. Pre-crisisannual production levels ranged from 150 to 160 million carats. In 2008-2009, the production of rough diamonds was reduced by all world companies. With the exception of ALROSA. Due to certain social obligations, the company was forced to work "in stock". To date, 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. Let's take a look at the main new major projects that should bring about 23 million carats of raw materials to the world.
The first one is Gacho Q. It is located in northern Canada. Production potential is about 6 million carats by 2020.
Second - "Pipe named after Karpinsky". Located in the Arkhangelsk region. The project is a subsidiary of ALROSA. The development of production suggests about 5 million carats per year.
Third - "Bander". Located in India. Production forecast is about 5 million carats per year.
Second tier companies
The diamond market in the global economy is characterized by "jumping" indicators. And second-tier companies also play a significant role in its development. Even those who have the very first experience in diamond mining.
For example, "Pipe named after Mushroom". Initially, it was to be sold by the Russian oil company Lukoil. However, today it is being developed independently.
Annual diamond production in2016 was able to reach 170 million carats. However, in subsequent years, production growth will be insignificant. By 2020, it will increase by only another 5 million carats. The fact is that the reserves currently being developed are gradually 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 rough and polished diamonds, in principle, can be distinguished by more positive indicators in the future. Everything 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 the production of large volumes of rough diamonds are 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 assumes a large increase in consumer spending, increasing world GDP at a very fast pace (more than 3.9%). Thus, demand for rough diamonds could rise to 371 million carats by 2020.
Although experts are also considering a conservative version of the market development. In this case, the major manufacturersthey will not be able to bring production to full capacity due to the difficult economic situation and technical reasons. World diamond production will remain at the current level for some time. However, it will gradually decrease. By 2020, it will reach 127 million carats. However, regardless of the development scenario, the next 10 years, according to experts, the world 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 growing. By 2020, the shortage of diamonds 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. Every year more and more stones are exported abroad. Exports are constantly increasing. Most of the diamonds from Russia are purchased by Belgium. It is followed by Israel (every year the country buys about $300 million worth of rough diamonds). India also buys a lot of stones.
By the way, Russia itself buys diamonds abroad. The volume of Russian imports is also increasing every year. Stones are purchased in Guinea, Belgium, UAE.
Most of all diamonds in Russia are mined by ALROSA (more than 90% of the total). According to this company, by 2020, the consumption of products with diamonds in the world will reach 128 million dollars. It will mainly fall 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, Almazy Anabar, Nizhne-Lenskoye, Uralmaz, Almazyuvelirexport. The largest Russian manufacturer and exporter of finished products from rough diamonds is the Smolensk-based Kristall Production Association. PA Kristall purchases 60% of diamonds from ALROSA, 4% of rough diamonds from De Piers, and the rest of the stones on the secondary market (including international online auctions).
So let's summarize. There is probably no such person on earth who would not be delighted with the beauty and brilliance of diamonds. Of course, because this is a real luxury! Jewelry with diamonds has gained wild popularity, despite the fact that not everyone can afford them. However, the resources of stones in the world are limited. Many significant changes have taken place in the global diamond market recently. Their nature was influenced by various processes - globalization, the joint actions of countries in the fight against terrorism and the shadow economy, the strengthening and growth of national self-consciousness, etc. Thus, a new image of the diamond market is being formed. Leadership in the diamond industry belongs to companies that implement advanced marketing methods, integrating their activities vertically.
