Morning Bites (part 1)

💎De Beers has cut rough prices 10-15% across all categories, Bloomberg reports, citing its sources. This was the largest cut since January (also -10%), and the first cut since May (4-6% for small units). On our numbers, the total price cut this year is >20%. Previously, the company followed a price-over-volume approach. In our view, the lack of liquidity amid the slump in PGM prices could have persuaded Anglo American to take such a step. This was underpinned by the reduction in purchasing flexibility for sightholders

To recap, the GJEPC noted a looming recovery amid significant reductions in polished inventories and price increases in certain categories. Moreover, junior miners (30% of global supply) making negative FCF, as well as the ongoing supply reduction, is a strong near-bottom market indicator

We continue to believe that in 4Q24-1Q25, polishers will unwind their inventories, paving the way for restocking in 2025

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