Rough diamond prices have risen 5-10% over the past few days due to supply problems amid the spread of the new omicron coronavirus strain in South Africa. About it informs Economic Times.
The publication notes that the spread of the new variant of the virus has affected, in particular, Botswana, where the main deposits are located.
Rising diamond prices have raised concerns among Indian polishers in Surat and Mumbai, who are receiving orders for polished diamonds from the United States, China and the Middle East. They began to hold on to their holdings so that they did not have to buy diamonds at a higher price.
“Demand exceeds supply. The proposal has been under pressure since the COVID-19 outbreak last year. The situation has returned to normal, but now a new version of COVID-19, which has appeared in South Africa and Botswana, will put additional pressure on the supply sector, ”Vipula Shah, vice chairman of the Council for the Promotion of the Export of Gems and Jewelry of India, quoted the publication.
Gems and jewelry make up India’s second largest export commodity, with diamonds accounting for over 63% of this volume. In total, India processes 14 out of 15 diamonds in the world.
According to ALROSA, the diamond price index has grown by 25% since the beginning of the year. informs Interfax. In the third quarter, rough diamonds gained 10%, reaching the level of 2018.