Morning Bites (part 1)

💎De Beers has reported sales of USD 200mn at its 8th cycle in 2023, 60% below the historical average and 61% weaker YoY (vs. -42% YoY at the 7th cycle in 2023). According to De Beers CEO Al Cook, the company has reduced the availability of its rough stones following high midstream stockpiles. The miner has also suspended its online auctions until the end of 2023, in addition to the option for sightholders to defer rough purchases (up to 25-50% of their allocations) at cycles 8-10, amid sluggish consumer demand

📌The supply discipline measures taken by De Beers and Alrosa (which jointly accounted for 59% of the global rough diamonds output in 2022) could help to eliminate excessive midstream inventories in the medium term, we believe. However, in the short term, we keep our cautious view on the diamond sector, amid the unfavourable macroeconomic environment globally and weak US sales (~53% of the world's gem-set jewellery trade)

#diamonds
https://metals-wire.com/sector/Diamonds