According to the latest report by independent diamond analyst Paul Zimnisky, quoted by Mining Weekly, the demand for rough diamonds has increased in the first quarter of the year compared to the preceding three-month period, and also relative to a year earlier.
According to his analysis, a “comparatively mediocre Christmas season 2016 was offset by strong 2017 Chinese New Year sales that have driven seasonal restocking demand”. Indian cutters have started to show “signs of recovery after the initial shock of the demonetisation” in November of 2016.
In addition, “demand growth this year is likely to come from a post-election US market, where employment is stable and the stock market is at an all-time-high, driving positive sentiment that should translate into discretionary spending”. India is also set to show an improvement year-on-year, “as domestic demand for jewellery returns as the demonetisation impact is digested, especially in the second half of the year”.
Year-to-date, rough diamond prices are up 0.9%, and polished prices are down 4.1%.
