Moscow, Russia – Alrosa, the world’s largest diamond producer, predicted that natural diamond prices would see an upward trend in the medium and long term, given the sharp and expected decline in global production levels.
The Russian company said in a statement issued on Monday that global diamond production this year will reach its lowest level in 20 years.
Declining production and pressure on prices
Alrosa explained that the decline in production is the main factor behind the price increase forecast, noting that: “Global diamond production this year will be about a third lower than it was six to eight years ago, reaching its lowest level in 20 years.”
On the other hand, the company indicated that global diamond product prices are experiencing less severe fluctuations this year compared to 2023 and 2024, with diamonds weighing 3 carats and above showing particularly remarkable stability.
Impact of US tariffs on India
The company’s report highlighted the pressure the global market has faced in recent months due to the United States imposing a 50% tariff on goods coming from India, which is the world’s largest producer of polished diamonds.
Alrosa expects that the combination of declining production and market pressures will strengthen the upward trend in diamond prices in the long term.
