Diamond miners are delaying sales and reassessing their production strategies due to a sluggish market.
On August 6, Petra Diamonds announced it would postpone its August-September tender from South Africa. This decision aims to align with major producers who are limiting supply in response to lower demand.
Petra Diamonds is not alone in this approach. De Beers has also adjusted its sales tactics. The company allowed buyers to decline more of their allocated diamonds than usual and increased the threshold for buybacks during its July sight. Additionally, De Beers has combined its August and October sales into one event, scheduled for September, just before the Diwali holiday.
This indicates that De Beers is selling fewer diamonds than initially planned. The company reported a 22% drop in rough diamond sales, totaling $1.95 billion in the first half of 2024. Sales volume fell by 26% to 12.7 million carats, and its rough price index decreased by 20%.
De Beers is also increasing its inventory. Production exceeded sales by approximately 624,000 carats in the first half of the year. At the start of 2024, the company already had a substantial stockpile, valued at $1.7 billion at the end of 2023, as noted by CEO Al Cook.
