The global diamond market has made a quick recovery from depressed levels seen in mid-2009, boosted by demand growth from emerging markets such as China and India, according to diamond producers.

Forbes reported that significant demand came from Asia, with China alone representing 5% of the world's market for polished diamonds.

In a letter to shareholders, DiamondCorp plc (DMC) chairman Euan Worthington and CEO Paul Loudon said the diamond market made a "staggering" recovery from the global economic meltdown, which saw prices plunge by about 60%.

According to diamond and jewellery network Rapaport Group, average prices of certified polished diamonds rose by 10.3% in 2010, while rough diamond prices rose by about 21%.

"No major new diamondiferous kimberlite discoveries have been made in recent years; this, together with the prospects on the demand side, could well lead to further price rises in the future," DiamondCorp said.

DiamondCorp said it expected demand to remain strong in Asia, with US economic recovery boosting consumption. The US is the largest consumer at 40%.

Petra Diamonds CEO Johan Dippenaar also held a positive outlook for the diamond market.

"Prices for both rough and polished diamonds are performing well currently, and we believe that the longer-term fundamentals of the market are robust, based upon a steady improvement in the US market coupled with exciting demand growth from emerging markets such as China and India," Dippenaar told information and analytics group Rough & Polished.