Morning Bites (part 2)
 
💎Kimberley Process has reported an 8% YoY drop, to 111.5mnct, in global diamond production in 2023, vs the revised 2% YoY increase in 2022. Botswana's output was up 2% YoY, while production in Russia decreased 11% YoY to 37.3mnct. The output in the rest of the world is estimated to have contracted 13% YoY in 2023. In our view, subdued downstream demand and the release of trader inventories has put pressure on the diamond market in 2022-23. The discipline measures taken by De Beers and Alrosa, implementing their price-over-volume strategy, also tightened global supply. Persisting weak prices continue to weigh on global producers. As such, Petra Diamonds has recently announced production guidance cuts of 20% for fiscal 2025-26 in order to optimise costs. Amid supply response, we affirm our view that the market is currently bottoming out and expect to see first signs of recovery in the coming 3-6 months

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