In response to a notable dip in diamond prices, De Beers, the global diamond giant, unveils a strategic plan to address market challenges. Allowing buyers to reject contracted stones, the company is poised to build a stockpile of unsold diamonds, anticipating a future increase in diamond prices.
CEO Al Cook, in a recent Gaborone briefing, emphasized, “We build up stocks because we are confident that over time the diamond price will increase, and we can meet the growing demand.”
The once-thriving diamond industry, boosted during the global pandemic, faces a market cool down as economies reopen. Initially perceived as a slowdown, the situation has escalated into a diamond slump. Challenges include rising inflation in the crucial US market, a real estate crisis impacting consumer confidence in China, and the growing market share of lab-grown diamonds.
De Beers’ decision aligns with industry-wide efforts to counter declining diamond prices. Rival Alrosa PJSC canceled sales, and India, a pivotal trading hub, temporarily halted imports.
Despite challenges, CEO Al Cook reaffirms De Beers’ commitment to producing up to 33 million carats of rough diamonds in 2023. Navigating what Cook describes as an «exceptionally difficult year,» De Beers remains resilient.
De Beers, a unit of Anglo American Plc, conducted its recent diamond sale in October, the smallest since 2020. The company plans to allow customers to refuse goods at the last sale of the year.
With a history of adeptly managing diamond supply, De Beers positions itself strategically to navigate challenges and capitalize on opportunities as the diamond market evolves.
