Surat’s lab-grown diamond industry, already grappling with oversupply issues, is facing further turbulence due to a steep price reduction by global diamond giant De Beers. The move has exacerbated the existing crisis, leading to increased competition and potential margin squeeze for local manufacturers. Industry experts believe De Beers’ strategic decision could trigger a ripple effect, forcing further price adjustments and consolidation within the Surat diamond sector.
Anglo American has reduced its diamond production forecast for 2024 after a steep decline in output during the first quarter. The company’s De Beers unit now anticipates producing 26 million to 29 million carats this year, down from the previous estimate of 29 million to 32 million carats. The cost per carat is also projected to increase from $80 to $90. These adjustments primarily stem from high inventory levels in a sluggish market and a 23% year-over-year decrease in Q1 rough diamond production to 6.9 million carats.
