Bain & AWDC Release Report: The Global Diamond Industry 2015

Market Analysis
08/12/2015 17:07

Bain & Co. has released its fifth annual report on the global diamond industry prepared by the Antwerp World Diamond Centre (AWDC) and Bain. This year’s edition takes a comprehensive look at the year’s major developments along the diamond value chain, focusing on the reasons for the recent drop in rough and polished prices against the background of continued but slowing growth in the macro economy. As in previous years, it addresses key developments along the value chain and provides a review of recent economic fundamentals that are the long-term drivers of diamond jewelry demand and prices. It also looks at the long- and short-term factors influencing prices to better understand the recent declines in polished and rough-diamond prices and expectations for their recovery. It also provides an update on the long-term outlook for the diamond industry through 2030.

AWDC CEO Ari Epstein: "This report confirms just how challenging the past year has been for the global diamond industry, but we must not lose sight of the fact that steps are already being taken to bring the system back into balance. While we have witnessed slow economic growth in the Far East impacting consumer demand, we have also seen continued robust US market performance. The US has always been the main driver of diamond consumption and is still going strong. And while the industry as a whole responded too ambitiously to exponential growth in Chinese and Indian demand in recent years, the current slowdown in those countries in no way implies long-term stagnation. The entire pipeline is now recalibrating its output, and prices, to adjust to somewhat lower growth forecasts. Furthermore, the measures the major miners have taken in response to the needs of the midstream, together with initiatives to stimulate demand for polished diamonds, should bring the pipeline back into balance. Every indicator points to a recovery starting mid-2016. We remain confident in the long-term prospects for the diamond industry."