Paul Zimnisky presenting at the 2021 The Southern African Institute of Mining and Metallurgy (SAIMM) Diamond -Source to Use- Conference on June 9, 2021.
Presentation abstract:
The commencement of production of three new large-scale diamond mines pushed global diamond output to a multi-year high of almost 152 million carats in 2017. However, due to a lack of new projects in the pipeline, and a continued depletion of legacy mines – compounded by the impact of the COVID-19 pandemic – diamond production has since dropped to a multi-decade low of under 120 million carats in 2020.
However, an oversupplied diamond supply chain was arguably the biggest culprit for this industry’s underperformance for most of the last decade, and as the diamond industry recovers from a challenging 2020, the curtailed supply appears to be structurally supportive of positive industry fundamentals.
Strength in the diamond industry, which started as a rebound of sorts in the second half of 2020, has continued, and even accelerated thus far into mid-2021. Global economic stimulus plus an essential halt in all experiential luxury, like travel and dining out, has boded well for diamond sales during the global lockdown.
Low diamond inventories combined with a post-vaccinated economy charged with pent-up wedding demand sets the industry up well for the remainder of 2021. Even as diamond prices advance at a pace not seen in years, it does appear that greater business discipline, as far as inventory management is concerned, has begun to take hold in both the upstream and mid-stream segments of the industry.
The above favourable supply/demand dynamics are setting favourable expectations for the remainder of 2021, and beyond for the diamond industry.
About:
Paul Zimnisky, CFA is an independent diamond industry analyst and consultant based in the New York metro area.
State of the Diamond Market monthly subscription-based report: [ Ссылка ]
Paul Zimnisky Diamond Analytics Podcast: [ Ссылка ]
Zimnisky Global Rough Diamond Price Index: [ Ссылка ]
Contact: [ Ссылка ]
