Demand for ethically sourced natural diamonds worldwide is expected to grow, especially in rapidly developing Asian economies, according to Anglo American.
Buying ethically sourced natural diamonds means making sure they are not linked to labor exploitation, conflict or environmental damage.
Anglo American is the parent company of De Beers, which is the world leader in diamonds and produces about one-third of the world’s rough diamonds by value.
This production takes place in four countries: Botswana, Canada, Namibia and South Africa.
Within its portfolio, De Beers (Anglo American: 85% interest), in partnership with the Government of the Republic of Botswana -through a 50:50 joint venture known as Debswana- has one of the richest diamond mines in the world at Jwaneng, and one of the largest resources, in terms of total carats, at Orapa.
Natural diamonds
After high demand in 2021 and 2022, global demand for rough diamonds fell sharply in 2023.
With polished diamond inventories rising and inflation and interest rates rising, jewelry retailers were cautious about buying new stock.
Anglo American indicated that demand for natural diamonds in the United States was affected by economic problems and increased supply of lab-grown diamonds.
Although sales of lab-grown diamonds increased, their wholesale prices fell sharply, further highlighting the difference with natural diamonds.
In China, economic problems reduced consumer confidence, leading to a slight decline in demand compared to 2022.
On the other hand, consumer confidence in India and diamond demand grew in 2023, especially towards the end of the year.
International trade
World diamond exports have performed as follows, measured in millions of dollars:
- 2020: 76,700
- 2021: 119,000
- 2022: 131,500
- 2023: 100,100
Anglo American expects industry conditions to remain challenging in the near term, but the long-term outlook is good.
Intermediate and retail demand stabilized at the end of 2023, although rough diamond stocks increased among producers.
During 2024, if producers gradually release their inventories, the high levels of intermediate inventories in 2023 are expected to decline as retailers replenish their stocks.