Natural diamond prices have stabilized and are beginning to rise as demand strengthens in key markets and global supply declines, De Beers CEO Al Cook said in an interview with Chinese broadcaster CGTN earlier this month, according to IDEX Online.
Cook attributed the stabilization to improving demand for natural diamonds, particularly in the US and India, as well as the closure of several aging diamond mines. He said the mine closures have contributed to a decline of more than 10% in global diamond supply.
The combination of stronger demand and tighter supply has reinforced De Beers’ confidence in the long-term outlook for diamond prices, Cook said, suggesting that the company may be seeing the early signs of a market recovery.
The comments come after De Beers reported interim results in July showing a 32% year-on-year decline in the average realized price of its rough diamonds, from $155 per carat last year to $105 per carat this year.
Cook made the comments during a visit to China as part of a broader industry effort to strengthen ties with the Chinese market. During the visit, he attended the September 15 signing of the Beijing Declaration on Natural Diamonds and Sustainable Development. The declaration was signed by the Shanghai Diamond Exchange, the governments of Botswana, Namibia and South Africa, and representatives of the Chinese and international diamond industry.
