JOHANNESBURG/MUMBAI, June 18: The world's largest diamond group, De Beers Central Selling Organisation, has reported a 41 per cent drop in sale of rough gem diamonds for the first six months of 1998. In monetary terms, the sale of diamonds has dropped to $ 1,700 million from $ 2,880 million for the same period in 1997.De Beers said in a statement yesterday that drop in sale was primarily due to the continuing recession in Japan and the economic crisis in South-east Asia since second half of 1997. "The contraction of the market in these areas," said De Beers, meant that the industry found itself in an "over stocked position." De Beers CSO thus took the decision to reduce sales in these markets significantly.
Rough diamond sales in the second half of 1997 were 16 per cent below that of the sales in the corresponding period in 1997 and 39 per cent below the record sales in the first half of 1997. However retail sales of diamond jewellery in 1998 continued to reflect the economic circumstances, with stronggrowth in India, United States, Canada and Europe.
Sales in Gulf states, China and Taiwan continued at reasonable levels, but markets in Japan, Korea, Thailand and Indonesia have declined further, De Beers said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
