A RECOVERY in the diamond market would “take time”, said Al Cook, CEO of De Beers which on Wednesday announced first cycle sales of $370m – 18.5% less than the $420m in first cycle sales last year.
Cook said “solid” consumer demand in the US over the year-end holiday season had “helped stabilise” the diamond industry which had resulted in polished prices increasing again. “Combined with the restart of rough diamond imports into India, this had led to demand for rough diamonds increasing substantially in the first sales cycle of 2024.”
But he warned that the prospects for economic growth in major economies “remain uncertain” adding that “we expect that it may take some time for rough diamond demand to fully recover”.
The diamond market slumped in the second half of last year which would result in De Beers losing money, according to Anglo American, the 85% shareholder in the diamond miner and marketer. For the final cycle of the year, De Beers reported sales of $137m. It retained rough diamonds to enable the mid-stream of polishers and cutters to clear inventory.
A similar effort to stem supply was launched by India’s Gem & Jewellery Export Promotion Council. It teamed up with various local diamond polishing associations to introduce a voluntary two-month freeze on rough diamond imports aimed at reducing inventory levels. Russia’s Alrosa temporarily suspended sales of rough diamonds for September and October, due to subdued demand.
Read More: De Beers warns diamond price recovery to take “some time”