De Beers faces record diamond stockpile amid market struggles
Date
12/29/2024 1:34:19 AM
(MENAFN) De Beers Group has accumulated its largest diamond inventory since the 2008 financial crisis, highlighting persistent challenges in the luxury gemstone market, according to a report by the Financial Times.
Throughout 2024, the diamond industry leader has maintained inventory levels of approximately USD2 billion, reflecting weakened global demand.
Key factors behind the slump include sluggish sales in China, increasing competition from lab-grown diamonds, and the lasting effects of the Covid-19 pandemic, which disrupted marriage rates worldwide.
“It’s been a bad year for rough diamond sales,” De Beers CEO Al Cook acknowledged.
In response to declining demand, the company has scaled back production by around 20 percent compared to the previous year and lowered prices during its latest rough diamond auction. These auctions, which cater to a select group of certified buyers known as sightholders, play a critical role in the diamond supply chain.
De Beers’ measures aim to navigate a challenging period for the USD80 billion diamond jewelry industry as it adapts to evolving market dynamics.
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