The diamond trade should anticipate a release of pent-up demand from Chinese consumers as Beijing eases its “zero Covid” policy, says Mountain Province CEO Mark Wall.
“We’ve got large parts of China very much constrained, and to me that creates a potential tailwind for the market in that while this is not a good circumstance for anyone to live in, eventually it will unwind or change, and that demand will be released,” he said on the latest Rapaport Diamond Podcast.
In early December, the Chinese government lifted its stringent restrictions following protests across the country. That, along with supply limitations relating to sanctions on Russian goods, should provide support for diamond prices and market optimism in the short term, Wall contended.
The podcast discussion between Wall and Rapaport’s Avi Krawitz covered a broad range of topics, including the effect of inflation on mining operations, the opportunity the current environment provides Canadian producers, the long-term prospects for Mountain Province, and the Ice Road that is developed each year to supply Gahcho Kué — which the company owns in partnership with De Beers — and other mines in the Northwest Territories.
Listen to the podcast here: