Diamond industry analyst Avi Krawitz presents his rundown of the India International Jewellery Show (IIJS) that took place last week in Mumbai. While noting that IIJS is currently a niche domestic show focusing on gold jewelry - which saw steady business, with jewelers expecting demand to rise along with gold's upward trend - Krawitz sensed optimism about the diamond market even though domestic diamond consumption has slowed recently. "India’s jewelry industry has some hurdles to climb before the diamond trade can grow domestic supply [and demand - DL].
Following last week's announcement that the fire that occured at the Ekati Diamond Mine process plant on June 23 would force it to shut down for three months, Canada's Dominion Diamonds has lowered its 2017 production forecast by 16%: from 5.6 million carats to 4.7 million carats. Futhermore, it is estimating the cost of repairing the damage done by the fire at US$19.25 million.
The International Monetary Fund has slightly reduced its expected global growth for 2015 to 3.3% from 3.5%, saying it was due to weaker-than-expected economic activity in North America during the first quarter. Other factors in the downward revision included a rebound in oil prices, rising bond yields and weak inflation.