The supply of rough diamonds remains stable, but the growing popularity of the gemstone in China and India means that demand will continue growing, said Stephen Lussier, CEO of De Beers’ Forevermark at an event this week in Chennai, India.

According to Lussier, India and China account for 20 percent of the global demand, and are expected to grow anywhere between 20 and 25 percent every year for the next four to five years. “At this rate, India and China would outperform the U.S. by the end of this decade,” he stated.

While prices of rough diamonds went up by over 30 percent, Lussier said, during the remainder of 2011 they should remain steady, largely as the result of the major mining companies deciding to hold on to their current price structure and supply levels till the end of this year. Rough diamond production of De Beers, he said, will recover to 80 percent of what it has been producing during the pre-recessionary peak levels.

“In the first half of 2011, the production was stagnant, but in the second half we look forward to five percent increase in production which will take us to 80 percent of our peak level production,” he told India’s Financial Chronicle.

“Production is expected to begin at our third mine at Gahcho Kue in Canada this year. The feasibility studies are completed and we are awaiting environment clearance for mining,” Lussier said.