Surat’s diamantaires are welcoming a recent correction in the prices of rough diamonds, India’s Business Standardreports.
Rough prices, which have shot up by as much as 60% since the start of the year, have declined by 20-22% in the past few weeks.
Surat Diamond Association President Dinesh Navadia said that with rough prices “under control” and the holidays approaching, “the time had come” for diamantaires to make a profit. “We are hopeful for robust demand during Diwali and Christmas,” Navadia stated.
A major issue with the spiraling cost of rough product seen this year is that polished diamond prices, while increasing, have failed to keep pace, cutting into diamond manufacturers’ profit margins. That trend has been reflected in the recent market correction, Navadia noted, with polished prices down but not to the extent of rough.
According to the Standard, some Surat diamantaires may take advantage of the drop in rough prices to build up their stocks. However, Navadia pointed out, not many diamond traders had the necessary liquidity to finance such a move.