De Beers Warns Diamond Recovery Will Be Slow After Terrible Year

De Beers expects any restoration within the beleaguered diamond market to be sluggish and gradual because the business continues to undergo from weak financial progress in key markets resembling China and the US.

The sector nearly got here to an entire standstill within the second half of final yr as De Beers and Alrosa PJSC — the 2 largest miners — all however stopped provides in a determined try and stem a hunch in costs. Whereas these efforts helped the market to select up a bit, it’s unclear how a lot urge for food commerce patrons at the moment have.

“We see 2024 as a yr of restoration,” De Beers chief government Al Cook dinner mentioned. “We count on that upturn in diamond demand to be gradual somewhat than sudden.”

The business has been whipsawed because the begin of the pandemic. It was one of many nice winners as stuck-at-home buyers turned to diamond jewelry and different luxurious purchases. However demand rapidly pale as economies reopened, leaving many within the commerce holding extra inventory that that they had paid an excessive amount of for.

The cooldown quickly escalated because the essential US market wobbled beneath rising inflation. As well as, client confidence in key progress market China was harm by a property disaster, whereas competitors from lab-grown diamonds elevated.

By Jennifer Zabasajja and Thomas Biesheuvel

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De Beers Cuts Diamond Prices to Revive Sales

De Beers made one of many steepest cuts to its diamond costs in years, because the world’s prime producer tries to revive gem gross sales after the market floor to a halt.