De Beers predict 2016, a volatile year
Philippe Mellier, CEO of the De Beers Group, predicts the year 2016, a year of inconsistency when the diamond industry is considered. Mellier at the first De Beers Sight of 2016 held on January 20 stated that the diamond industry would experience the encouraging signs at the beginning but apprised that the upturn in the diamond industry would remain weak as probably there was some volatility in 2016.
Philippe Mellier, CEO of the De Beers Group while addressing the Sightholder reception held on the 20th of January this year has predicted that diamond industry would face some volatility this year. During the first De Beers Sight of 2016, CEO of the group too states that the diamond industry should stay cautious as the sector would remain delicate due to some volatility in the year 2016. Mellier likewise highlights some positive developments, as the company has experienced the price stability of the polished diamonds as well as seen the price increase in certain areas. He too added that aside from some encouraging early indications from the US market due to the holiday season sales, there continues to be uncertainty. He explains uncertainty (riskiness) regarding the currency pressures, macroeconomic outlook. He also added that they need to see how retail restocking expands as well as recognize the pivotal role played by the midstream diamond businesses in facing the recent difficulties. Mellier states that they all need to take difficult decisions keeping in mind the trade-offs betwixt what was right for the business and the industry. He added that all the players in the diamond industry had to sop up the impact of off-putting trading conditions in the short-term in order to protect the industry’s long-term interests. Further, he adds that De Beers would set out the approach to support as well as accelerate the improvements in the diamond industry by focusing on both supply and demand.