Russian diamond mining giant Alrosa predicts a rebalancing of supply and demand in the diamond market in the coming months, as inventory levels in the midstream sector continue to fall. Sergey Takhiev, Alrosa’s head of corporate finance, highlighted strong demand for jewelry and a significant reduction in diamond mining capacity—down by as much as 20% compared to 2018-19—as key factors contributing to the anticipated price increases.
Takhiev explained that the rapid growth of online jewelry sales has enabled jewelers and retailers to reduce their inventory requirements. “As a result, the process of normalizing inventories took a long time. However, the decline in production observed in recent years, driven by the natural depletion of the global resource base, along with the expanding capacity of the luxury goods and jewelry markets, will support long-term price growth for diamonds,” he added.
The combination of lower production and increased demand, particularly in the luxury sector, is expected to drive sustained price increases for diamond products in the future.
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