According to the bank, diamond cutters and cutters in India process nine out of 10 newly mined diamonds.
Although diamond prices rose only slightly this month, the data from India appears to be directly consistent with De Beers’ previous sales cycle in 2023, which saw value increase by 51% to US$130 million (9th cycle: US$80 million), the bank said. explain.
Morgan Stanley said there is evidence that Indian midstream has started to replenish inventories. If this is the case, it means increased demand, which affects prices.
According to Bloomberg, the improvement in underlying demand has not yet been reflected in De Beers rough diamond prices, which have declined.
De Beers is cutting prices by about 10 percent across the board in its first sale of the year, which is typically one of its largest, the news agency said, citing people familiar with the matter. Prices for a category of large gemstones are said to have fallen by a quarter.
The first sale of the year is one of the most important, as midstream buyers cut and polish rough stones into jewelry, replenishing inventories after the crucial holiday season, the report said.
Morgan Stanley said India’s polished stone exports, an indicator of demand, fell 32% year-on-year and 22% month-on-month. Overall prices fell 24% in December from November and were down 29% for the year, the report said.
Anglo American owns 85% of De Beers, which posted negative cash flow in the second half of its 2023 financial year to December. “We are facing significant pressure downstream due to slowing consumer numbers and a weak recovery in China,” Anglo American chief executive Duncan Wanbland said in December.
The diamond group’s 2023 production fell short of the planned 25 million carats, compared with forecasts of 30 to 33 million carats, but Wanblad said: “Diamond fundamentals remain strong and we expect a rebound next year.”
