Diamond prices fell by 3-4% in real terms in 2024, compared to a 15% decline in 2023, according to Sergey Takhiev, head of the financial division at Alrosa, as reported by Rough&Polished.
Takhiev told Interfax that this figure reflects the real cost of rough diamonds imported to India. He explained that the drop was caused by a sharp rise in cutting and polishing costs, which forced companies to sell off stock and hold off on purchasing new rough diamonds.
“As soon as stock levels normalize, the [market] processes will start working as intended again,” Takhiev said. “The issue is not with final demand—final demand remains strong. Fundamentally, the market is very healthy and robust.”
According to Rough&Polished, Takhiev expects that the excess stock, which last year reached 40-45 million carats, will significantly decrease, with market inventory balancing by the end of the year. He also forecasts that demand in the luxury segment will grow by 40% over the next 5-6 years, primarily driven by emerging markets.
Read More: Alrosa Anticipates 4% Drop in Diamond Prices in 2024