Namibia’s rough diamond production increased 9% to 2.3 million carats in 2023 from 2.1 million carats in 2022.
In its preliminary financial results for 2023 released Thursday, De Beers said the increase was driven by the Benguela Gem vessel, which started operating in March 2022.
De Beers also attributed the increase to the ongoing ramp-up and expansion of the mining area at the land operations.
According to De Beers, global rough diamond sales fell significantly in 2023 after strong demand in 2021 and 2022.
With polished diamond inventories rising and inflation and interest rates increasing, jewellery retailers took a cautious approach to purchasing new stock.
Macroeconomic challenges and the rising supply of lab-grown diamonds impacted US consumer demand for natural diamonds. However, while sales of lab-grown diamonds to consumers increased, wholesale lab-grown prices continued to fall sharply, supporting further differentiation from natural diamonds.
In China, economic challenges led to low consumer confidence, which led to marginal consumer demand contraction off the subdued levels seen in 2022.
In contrast, India’s consumer confidence and demand growth were robust in 2023, especially towards the end of the year.
The retail slowdown increased midstream polished diamond inventories over the year, resulting in downward pressure on polished diamond wholesale prices.
In response, the midstream industry in India implemented a voluntary moratorium on rough diamond imports into the country between October 15 and December 15.
De Beers supported its Sightholders by offering complete flexibility for rough diamond allocations for Sight 9 and 10 as the midstream sought to re-establish equilibrium.
This resulted in meagre rough diamond sales in the fourth quarter.
Overall, during the fourth quarter, industry conditions began to stabilise. Retail demand improved over the end-of-year holiday season, especially in the United States, helping to ease midstream inventory pressure. However, with ongoing macroeconomic uncertainty, it is anticipated that recovery in rough diamond demand will be gradual.
