20 Nov 2007 - 12:00
Smolensk Kristall, the largest Russian polished diamond manufacturer, expects significant increase of gems consumption on the inside market, as the Kristall CEO Maxim Shkadov stated on the press-conference on Nov.2.
According to Shkadov, the total diamond consumption in Russia will have 10% increase. Kristall is going to increase the home sales to $10 mln. Maxim Shkadov also noted, that he expects further sales growth on 15-20 %. The Kristall’s 9 month profit was $320 mln. Speaking about the world’s diamond market development trends, Maxim Shkadov noted, that the De Beers corporation refuse of single-channel sales system makes the market more competitive, but it also will bring changes, never known in history.
“After the 2006 crisis the gambling trend for the diamond market still remains because of the aggressive policy of India” – Kristall CEO stated. In 2006 there was oversupply on the diamond market. According to Shkadov, Indian diamond export today is estimated in $7-8 billion annually, and granting of credits for rough buying to the local polishers is a part of a national policy of the country. The credits are granted on arm's length terms, but without caution, and, according to Shkadov, this generates excitement and gambling climate. “This climate shakes diamond prices irrespectively to legislation and diamond market conditions” - Maxim Shkadov added.
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