20/6/11-Diamond demands exceeds manufacturing capacity
30th June 2011
The current demand for diamonds is actually greater then the manufacturing capacity. It is likely that in the future there will not be enough rough diamonds available to keep all of the manufacturing facilities open, although the market is expected to be favorable for the next five years. In addition to this the worlds demand for diamond jewelry is expected to grow at a rate of 5.3% per year.
Approximately 50% of the world’s international diamond jewelry sales take place in the USA, which is also growing rapidly to keep up with the consumer’s demands. Japanese and European markets are not growing as quickly in comparison to the consumer’s needs and, in contrast to this, both the Chinese, Indian and other worldwide markets are all growing at a faster rate then consumer spending.
Four major companies, De Beers, Alrosa, BHP Billiton and Rio Tinto, which together produce about 70% of global diamond production, mainly control the diamond producing market.