President Of IDMA: Rough Diamond Prices Must Drop Another 15%

Opinion piece
03/11/2015 00:05

Maxim Shkadov, president of the International Diamond Manufacturers Association (IDMA) and CEO of manufacturer Kristall Smolensk, told Rapaport News that rough diamond prices need to come down by 15 percent - albeit gradually, so as not to destabilize the market. “Rough prices need to come down to represent a fair value compared to polished but the concern is that if they go down in one shot, polished prices will go down again and the cycle will never stop,” he said. Shkadov estimated that rough prices have declined by about 15% since the beginning of the year and that they need to drop another 15% to enable manufacturers a reasonable profit. He expects manufacturing to start to recover only in the second half of 2016.