De Beers remains optimistic about improving diamond demand

De Beers remains optimistic about improving diamond demand
De Beers remains optimistic about improving diamond demand

(Ecofin Agency) – The diamond market has been in crisis for several months, with a drop in demand and prices. The world’s largest producer by value, De Beers recorded a decline in revenues in this context, but remains optimistic for the years to come.

De Beers announced revenues of $380 million on May 23 for its fourth diamond sales session. While this is a drop of 20.6% year-on-year and around 15% compared to the third session of 2024, the mining company is optimistic that the situation will improve.

Demand trends in the United States [marché n°1 dans le monde pour les diamants, Ndlr] should be driven by short-term macroeconomic issues, but supported in coming years by a resumption of commitments as the aftereffects of pandemic shutdowns fade“, explains Al Cook, CEO of the group.

It should be noted that this is the first drop in revenue between two sessions this year for the company. It is explained in particular, according to the CEO, by lower than normal transactions in India, due to the legislative elections. The country in fact holds 90% of the cutting and polishing market in the world.

As a reminder, the various turbulences which have characterized the diamond market in recent years are part of the reasons which pushed Anglo American to decide to remove De Beers from its portfolio. The parent company of the world’s largest diamond producer in terms of value announced on May 14 the sale of the company or its split into an independent group. The process, which should take several months, may still be modified if the attempt to take control of Anglo American by its rival BHP succeeds.

Also read:

05/14/2024 – De Beers will no longer be part of Anglo American’s portfolio

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