Skip to content

Rough Diamond Prices Are Expected To Stay Stable In FY24

While CPD businesses have kept strong control over the working capital cycle thus far, limiting their reliance on working capital loans, their capacity to do so in the future remains crucial from a credit standpoint.

Rough diamond prices are likely to remain firm in FY2024 as no major ramp-up in mining output (of rough diamonds) is expected over the next two years. This, coupled with recessionary pressures, shall continue to exert pressure on the revenues and profit margins of Indian cut and polished diamond ( CPD ) entities. ICRA expects revenues and OPMs of CPD players to decline by 8-10% and by 50 bps respectively.

QUICK JUMP
ADVERTISEMENT
ADVERTISEMENT

Raw diamond prices are predicted to stay strong in FY2024, as no significant increase in mining output (of rough diamonds) is anticipated over the following two years. According to credit rating agency ICRA, this, combined with recessionary challenges, would continue to put pressure on the sales and profit margins of Indian cut and polished diamond (CPD) firms in FY2024. While CPD businesses have kept strong control over the working capital cycle thus far, limiting their reliance on working capital loans, their capacity to do so in the future remains crucial from a credit standpoint.

ADVERTISEMENT
ADVERTISEMENT

Rough Diamond

According to Sakshi Suneja, Vice President and Sector Head – Corporate Ratings at ICRA Limited, “While additional expenditure channels are being opened, global surplus money is being unwound, and inflationary pressures are building in major consumer markets, After a stellar success in FY2022, Indian diamantaires are experiencing a slowdown in demand in FY2023, headed by areas in the United States and Europe. Cost pressures remain elevated as a result of solid rough pricing (due to mining firms’ sustained restricted and lower-than-pre-pandemic supply).”

She said “Due to weaker demand, cut and polished diamond (CPD) businesses’ capacity to pass on these increased raw material prices remains limited, thereby impacting their operational profit margins (OPMs). As a result, ICRA anticipates CPD players’ revenues and OPMs to fall by 8-10% and 50 basis points, respectively, in FY2023.”

Rough diamonds are diamonds that have not been cut, polished, or subjected to any procedure or treatment after being mined. They are precisely how they are after being discovered in the soil. Rough diamonds are also known as uncut diamonds, raw diamonds, and natural diamonds.

Rough diamonds are prized for their pristine condition and inherent beauty. Their worth is derived from both their beauty and their raw material, and many people are unaware that the price of a polished diamond is determined by the cost of the rough diamond.

At Truoosh, we’re here to help you navigate this overwhelming world of stuff. All of our market picks are independently selected and curated by the editorial team. All product details reflect the price and availability at the time of publication. If you buy something we link to on our site, Truoosh may earn commission.

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Billionaire Laurence Graff paid a record-breaking $46.1 million for a magnificent vivid pink diamond weighing 24.78 carats. Originally owned by his competitor Harry Winston, it now carries graff’s name and is a part of the legendary collection of rare diamonds.

We usually advise brilliant round diamonds with a cut grade of very good, ideal, or super ideal for engagement rings (also known as hearts and arrows). A high cut grade maximises a diamond’s beauty for a given carat weight.

ADVERTISEMENT
ADVERTISEMENT

It’s crucial to have a concept of what you might prefer before starting your search because it will enable you to focus on fewer of the many engagement ring possibilities that are now available. Also, when you initially start browsing, it helps to have a few distinct design concepts and the overall budget because the variety can be overwhelming.

Here are Engagement Ring Trends 2023:

1. Modern Art-Deco
2. Colored Stones
3. Lab-Grown Diamonds
4. East-West Settings
5. Multiple Large Stones

The traditional round diamond form, which is the most common, may come to mind when you think of diamonds. But if you want something different, a tonne of alternative forms may be found to suit your unique taste and style. Each diamond shape has its own fire and brilliance because they are cut to different standards, altering how they reflect light.

The most popular kinds of diamonds are listed below:

1. Round Brilliant Cut Diamonds
2. Princess-Cut Diamonds
3. Marquise-Cut Diamonds
4. Cushion-Cut Diamonds
5. Emerald-Cut Diamonds
6. Radiant-Cut Diamonds
7. Pear-Shaped Diamonds
8. Oval Diamonds
9. Asscher-Cut Diamonds