- Slight recovery for the Antwerp diamond sector in 2016
- AWDC expects no impact from the Brexit and the US policy of the new president Trump on diamond export from Antwerp
The Antwerp diamond sector is finally recovering. After a difficult 2015, there was a slight recovery in 2016. The forecast for 2017 is positive with more traded rough diamonds and an increasing number of auctions.
In 2013 and 2014, the Antwerp diamond sector exported almost 60 billion, which was about 4.5 percent of the total Belgian export. In 2015, the export dropped to 48 billion. In 2016, it stabilized and it was the same as in 2015. In volume, there was a 5% increase, or a total of 202 million carats traded diamonds.
Import and export of polished diamonds declined, as opposed to import and export of rough diamonds, which accounts for 25 million dollars. 84 percent of all rough diamonds pass through Antwerp. The Antwerp diamond sector conducted an active recruitment policy, while looking for new markets in 2016. For example, there have been organized trade missions to Brazil and Russia, which had a positive impact on the number of tenders. In 2016, there were 86 tenders. “Never before there were so many”, said Ari Epstein, CEO of the Antwerp Diamond Centre (AWDC). “There have been launched three new mines last year that will sell their diamonds in Antwerp. These three mines will produce 7 million carats extra.” Rough diamond is becoming a rare product. Many mines are depleted and there won’t be three new mines every year.
Diamonds remain the best investment in 2017
The Antwerp Diamond Centre estimates limited impact of the Brexit or the policy of the new US President Trump on the sector. The world’s largest importers and exporters of polished diamonds are China, India and the US. The rising purchasing power in the US predicts an increase in demand for diamonds. Analysts also predict a small increase in diamond prices, which will have a positive effect on demand.
There is also the carat tax. It is too early to assess its impact, because it is introduced only in late 2016. “Diamond companies will pay more taxes, but the levy also creates more fiscal certainty”, says Epstein. As a result, there are more requests from diamond dealers who want to return to Antwerp from abroad.
BAUNAT DIAMONDS helps potential investors to obtain the best possible investment in diamonds.
Read more here: