Anglo American said this week that it is considering even more cuts in diamond production by its subsidiary De Beers.
The announcement coincided with a company report that De Beers’ third-quarter production fell 25% from the prior year.
“The diamond market remains challenging as the midstream continues to hold higher than normal levels of inventory and the expectation remains for a protracted recovery,” Anglo CEO Duncan Wanblad said in an Oct. 24 statement. “We will continue to assess the options to reduce production going forward.”
According to De Beers’ Q3 production update, high inventory levels stem from a “prolonged period of depressed consumer demand in China.” The company has combined its seventh and eight sights of the year and moved the last two sights earlier, to support clients “as they head towards the end-of-year retail selling season,” it said in the report.
The De Beers Jewellers retail chain “delivered consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macro-economic headwinds and slower Chinese recovery,” the production report said. De Beers added that Forevermark’s global operations were winding down, with the brand focusing its efforts in India.
Anglo has said it plans to sell De Beers or spin it off by the end of next year.
(Photo courtesy of De Beers)
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