According to the firm, Alrosa diamond manufacturer in Russia boosted its revenues 14-fold in July 2021 compared to the same month last year. According to Vedomosti, Alrosa’s rough diamond sales hit $2.55 billion in the first seven months of the year, which is 2.6 times more than in the same period in 2021.
The increase in sales is due to increased demand from the diamond-cutting sector, which experienced a raw material scarcity in May and June, according to Alrosa. Diamond cutters are encouraged, in turn, by the fact that customer interest in acquiring diamond jewelry rose in the second half of 2021. According to the firm, demand for diamonds has already surpassed pre-pandemic levels in several areas.
The scarcity of rough diamonds will endure because waves of new coronavirus strains will continue to stymie the work of diamond producers in South Africa and Australia, which account for up to 15% of global diamond output, according to Sergey Grishunin, Director of the NRA rating agency. According to the researcher, high food prices would lead to strikes in those nations.
Diamond producers and cutters have limited supplies, but demand for diamonds is increasing on major markets, according to Kirill Chuiko, Analysis Chief at BCS Global Markets. According to him, it is an indication that the market is experiencing shortages, and the only way to balance it out is to boost prices.
Chuiko went on to explain that rising jewelry prices are another cause for the surge in diamond prices. Jewelry costs have risen by 57 percent, according to the Edited business. According to the expert, a lot of reasons indicate that the price of diamonds would continue to rise.