Sergey Takhiev, Head of Corporate Finance at ALROSA, one of the world’s largest diamond producers, has forecasted a recovery in the diamond industry by 2025. This growth is expected to be fueled by strong demand for luxury jewellery and a sharp drop in global diamond mining output, which has fallen by up to 20% compared to levels seen five to six years ago, according to a report by Rough&Polished.
Takhiev explained that while diamond prices remain low at present, demand is likely to increase in the coming years. This is due to shrinking diamond inventories at manufacturing centers in India and reduced production by major mining companies.
When asked about the timeline for replenishing market inventories, Takhiev estimated it could take a few months. He emphasized that rebuilding stocks of rough and polished diamonds will have a ripple effect across the entire supply chain, impacting manufacturers, wholesalers, and retailers alike.
Takhiev also pointed to the long-term challenges facing the industry. He noted that the depletion of global diamond resources, coupled with growing demand for high-end jewellery, is expected to drive prices upward over time.
In other news, ALROSA announced a leadership change. Vladimir Marchenko, who has served as the company’s Deputy CEO since 2018, will be stepping down from his role. Marchenko is set to take on a new position within the mining sector, though further details about his next move have not been disclosed.
The diamond industry continues to navigate a complex landscape, but ALROSA remains optimistic about a rebound in the coming years, driven by shifting market dynamics and evolving consumer demand.
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