The diamond market is slowly becoming more disciplined. With high rough prices, declining polished, less available credit and lower retail inventory levels, it has become increasingly difficult for diamantaires to turn a profit. Therefore, they need to carefully navigate the significant changes taking place to improve their position in the market.
Three changes are shaping 2015 into a watershed year for the diamond market as they will have a lasting impact on how the trade operates. The banks are reducing their available credit to the industry, businesses are being forced to adopt more corporate structures and the trade is realigning to lower, more efficient inventory levels. Avi Kravits analyses.