SURAT/JOHANNESBURG: Even though Surat’s diamond industry is still struggling to recover from the blow it received following the recession, global diamond producers are on way to recovery.
According to news reports global diamond producing major De Beers has recovered from its earlier setbacks and is all set to achieve a positive interim and full-year bottom line despite slashing output by 90% in the first quarter.
This piece of information has sent a cheer among diamond traders in Surat because De Beers controls most of the diamond business in the world.
The diamond market, hammered by the global downturn, is slowly improving but De Beers is pushing forward with a plan to slash 2009 operating and capital costs by $1,5-billion.
According to newspaper reports, the company expects this year to be profitable.
De Beers controls about 40 percent of the rough diamond market.
Despite a slump in demand for the sparklers, China is still bullish on diamonds.
In USA also the demand is on the surge.
Sales of engagement and wedding rings have held up during the downturn and research has shown that people are delaying, not canceling other diamond purchases.
The increased demand may also spur a further rise in output in the second half after the heavy cuts early in the year that saw the group’s Debswana unit in Botswana shut down completely, cutting first quarter output by 91 per cent.Botswana is back in production and the Namibian mines restarted this month.
Additional Reading :
NOVEMBER 18, 2008
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Diamonds Piggy Bank Broken
Diamond Competitors : China -v- India
Diamond Processing On Road To Recovery
Diamonds Fund Terrorism in Surat, IndiaRabbi and the Terrorists
Gandhi Items Are Sold for $1.8 Million
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