Paul Zimnisky: Diamond Market to Reach Balance in Mid-2016?

In a recent article, Paul Zimnisky of Paul Zimnisky Diamond Analytics lays out the supply and demand dynamics of the diamond industry, commenting that a balance could be reached by mid-2016.
Speaking about demand, he states:

Within the last two weeks both ALROSA (RTS: ALRS) and De Beers have indicated that global demand jewelry demand is going to be -2%-to-flat in 2015.
With U.S. and Mainland China demand for diamond jewelry relatively stable in 2015, industry participants have indicated the weakness this year is primarily attributed to the Hong Kong and Macau segment of the Greater China market, with Hong Kong more specifically impacted by a reduction in mainland tourism due to a weaker yuan, and Macau impacted by continued government campaigns targeting corrupt luxury gift giving.

While a moderate net decrease in Chinese demand for diamond jewelry is expected this year, I think it is important to remember that demand is still relatively stable. What is more significant is the change in the rate of growth of demand, which is ebbing as the region transitions to a more of a consumer driven economy (which should eventually have a longer-term positive impact on discretionary luxury items like diamonds).
The underlying Chinese appetite and ability to purchase diamonds is by no means going away. In fact, the market is still so influential that the industry’s peripheral markets: Europe, the Middle East, Japan, and Australia are circumstantially being driven by Chinese tourism. Two weeks ago, Tiffany (NYSE: TIF) specifically attributed optimistic Q3 results in their Japanese market to an increase in Chinese tourist traffic.