Moody's Investors Service on Thursday forecast the global revenue from rough d
Moody’s Investors Service on Thursday forecast the global revenue from rough diamonds to fall by 30-40 per cent this year following the lockdown imposed by the governments around the world to contain the Covid-19 pandemic.
Rough diamond sales volume and prices will fall in 2020 as a result of the near shutdown of the global economy, Moody’s Investors Service said in a report adding that the measures the governments have taken to contain the coronavirus pandemic have disrupted all stages of the diamond value chain from rough diamond miners, through cutters and polishers to the jewellery end market.
“As a result, we forecast a 30-40 per cent fall in global revenue from rough diamond sales this year, a credit negative for major producers Alrosa PJSC and DeBeers, majority-owned by Anglo American plc (Baa2 negative), it said.
The report also said it expects the big producers, which are pursuing ‘price over volume’ strategies, will cut prices less than smaller producers, who are more eager to provide large…