[miningmx.com] – DE BEERS was expected to produce about 27 million carats in 2013, said Bloomberg News citing the diamond firm’s CEO, Philippe Mellier, who said that constrained supply would provide a platform for price growth.
Diamond prices are headed for their first annual price drop in four years, equal to a 16% decline year-on-year. Diamond prices had increased 20% a year for each of the last three years, Bloomberg News said.
“The supply is going to be constrained next year so we have an opportunity for further price growth in 2013,’ Mellier said in an interview with Bloomberg Television. “This year we’re going to produce around 27 million, we will be around that number next year.’
De Beers’ 2012 production will be the lowest since 2009 when it slashed output by 50% amid the global financial crisis. The 27 million carats it plans to produce this year represents a 43% decline from its pre-crisis output in 2008, Bloomberg News said.
On the demand side, growing Chinese demand would also help support an increase in prices, Mellier said.
“As a whole, US steady growth, China increased growth, India coming back. I think 2013 should be better than 2012 so the prospect for growth is there,’ Mellier told Bloomberg News.
