{"id":603659,"date":"2017-12-20T01:02:15","date_gmt":"2017-12-20T01:02:15","guid":{"rendered":"https:\/\/juniorminingnews.com\/?p=603659"},"modified":"2017-12-20T01:02:15","modified_gmt":"2017-12-20T01:02:15","slug":"20-increase-in-rough-diamond-revenue-despite-waning-consumer-demand-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=603659","title":{"rendered":"20% increase in rough diamond revenue despite waning consumer demand"},"content":{"rendered":"

By analyst<\/a><\/span> <\/p>\n

By Nadia Lepak<\/a><\/span> <\/p>\n

A recently released annual report<\/a> by the Antwerp World Diamond Centre (AWDC) and Bain & Company revealed that diamond producers experienced a 20% revenue increase in 2016 from the year prior.<\/p>\n

For the top five diamond producers, aggregate operating profit for 2016 rose about 3%. While rough-diamond prices experienced declines during 2015 and 2016, the industry turned around in 2017. Polished diamond prices, which also declined in 2015 and 2016, stabilized in 2017.<\/p>\n

\u201cThe continuing slowdown in global diamond jewelry demand and the resulting downward trajectory of polished diamond prices translated to a slight revenue drop in the cutting and polishing segment in 2016,\u201d according to authors of the report<\/a>. \u201cDespite this drop, the midstream bought 20% more rough diamonds (by value) from producers in 2016 than in 2015.\u201d<\/p>\n

The profitability of midstream players improved in 2016. However, pressure renewed on midstream markets after the first half of 2017 saw rough-diamond prices increase by 3% and polished-diamond prices drop by 3%.<\/p>\n

Midstream 2016 revenues fell in US dollar terms. A downward trend continued for polished diamond prices, which the report states<\/a> is a reflection of \u201csoft consumer demand for diamond jewelry across key markets.\u201d Rough prices declined even faster than polished, \u201crestoring profitability to many players in the segment.\u201d<\/p>\n

Meanwhile, the first half of 2017 saw rough and polished diamond prices converge.<\/p>\n

Three challenges of the diamond industry were covered, including \u201cslowing long-term demand for diamonds, further developments of the lab-grown diamonds field, and the financial sustainability of the midstream.\u201d<\/p>\n

Generic marketing spend by rough diamond producers decreased from \u201c5% to less that 1% of rough diamonds.\u201d However, rough-diamond players are now investing more into both generic and private-brand marketing in attempts to reverse this trend.<\/p>\n

While technology for lab-grown diamonds evolved, report authors<\/a> suggest that \u201c[c]oexistence of markets for natural and synthetic coloured\u2026 for more than a century suggests that markets for natural and lab-grown diamonds can develop in parallel without cannibalizing each other.\u201d<\/p>\n

And despite fluctuating prices and sales numbers, midstream players \u201chave stepped up the development of new technologies and pursued operational efficiencies\u201d to attain higher margins and allow them some financial advantage.<\/p>\n

The report projected global rough-diamond demand to grow between 1% to 4% average annual rate through 2030, and supply to grow between 0% to 1% per year during that period. There is expectation that the current leading diamond jewelry markets (US, China and India) will remain at the top, and that \u201cUS diamond jewelry demand will stabilize in 2017.\u201d<\/p>\n

Click here<\/a> to read the full report.<\/p>\n

The post 20% increase in rough diamond revenue despite waning consumer demand<\/a> appeared first on MINING.com<\/a>.<\/p>\n

\u2026read more<\/a> <\/p>\n

Source:: Infomine<\/a><\/p>\n

The post <\/a>20% increase in rough diamond revenue despite waning consumer demand<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By analyst By Nadia Lepak A recently released annual report by the Antwerp World Diamond Centre (AWDC) and Bain & Company revealed that diamond producers experienced a 20% revenue increase in 2016 from the year prior. For the top five diamond producers, aggregate operating profit for 2016 rose about 3%. While rough-diamond prices experienced declines […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/603659"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=603659"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/603659\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=603659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=603659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=603659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}