International News
De Beers Projects First-Half Loss Amid Inventory Sell-Off and Market Headwinds
De Beers is expected to post a loss for the first half of 2025, as parent company Anglo American cites “stock rebalancing initiatives” that led to the sale of rough diamonds at reduced margins. The move aimed to offload out-of-balance inventory, sold at lower prices than originally purchased, according to the group’s latest production report.
“Accordingly, we expect to report negative underlying EBITDA for De Beers in the first half of 2025,” Anglo American stated.
Consolidated rough-diamond sales (excluding joint ventures) rose 14% year-on-year to $1.19 billion in Q2, despite a 7% drop in volume to 6.8 million carats. Total sales, including joint ventures, slipped 3% to 7.6 million carats. The company attributed the performance to targeted sales efforts during the quarter.
These “stock rebalancing” transactions — effectively quiet, low-margin deals with sight-holders — were confirmed by a De Beers spokesperson. “These transactions incurred lower margins as they were purchased in a higher price environment than they were sold at,” the spokesperson told.
Despite lower-margin deals, the average consolidated price per carat rose 23% year-on-year to $174 in Q2, reflecting strong demand for higher-value stones. However, De Beers’ rough-price index (which excludes the discounted inventory sales) dropped 13%, largely due to price reductions implemented at its December 2024 sight.
For the full first half of 2025, consolidated rough-diamond sales fell 13% to $1.71 billion. Volume dropped 8% to 11 million carats (consolidated), and 3% to 12.3 million carats overall. The average price per carat fell 5% to $155, with a 14% decrease in the price index offset partially by higher-value goods sold in Q2.
Anglo American noted continued weakness in rough-diamond trading during the first half of the year. While sentiment improved toward the end of Q1, the U.S. tariff announcement in April stalled polished-diamond activity.
Consumer demand for diamond jewelry remained “broadly stable,” contrasting with the strained conditions in the midstream.
In response to market pressures, De Beers slashed its Q2 production by 36% year-on-year to 4.1 million carats. First-half output declined 23% to 10.2 million carats. Despite this, the company has maintained its full-year 2025 production forecast at 20 to 23 million carats but said it will “respond accordingly” as conditions evolve.
These developments come amid Anglo American’s ongoing efforts to sell De Beers. On Wednesday, Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, stated the country’s intent to increase its ownership stake, seeking “full control over this strategic national asset and the entire value chain, including marketing.”
“A formal process for the sale of De Beers is advancing, despite the current challenging market conditions,” Anglo American confirmed.
- Around $3728 (~Rs 110,300) for gold futures and $43.23 (~Rs 129,7000) for silver, both markets were trading close to a record high ahead of the US FED’s two-day policy meeting that begins today.
- The Fed is expected to cut interest rates by 25 basis points on Wednesday, the first since December, and markets are almost certain that the easing cycle will continue into the following year. Recap: Despite the president’s dismissal, the federal appeals court permits Lisa Cook to remain as a Fed gov and take part in the FOMC meeting beginning tomorrow.
- For clues about the direction of future policy, all eyes will be on the Fed’s quarterly Summary of Economic Projections, which includes the much-awaited dot plot, and Chair Jerome Powell’s press conference. Regarding the data, reports on industrial production and retail sales that are anticipated later today will be closely examined to gain more understanding of how strong the economy is.
Technical Triggers
- Gold Dec Futures has given a breakout above $3700 (~Rs 110,000), the next target would be $3800 (~Rs 113,500). If prices top out and fall below $3650 (~Rs 108,500), then only we could see further profit booking.
- Silver Nov Future prices have given a breakout above its consolidation range of $41 (~Rs 123,000) and $42 (~Rs 126,000) for the past few days and achieved the target of $43. This rally has more room for upside towards $45 (~Rs 140,000)
Support and Resistance
| Commodity | Market | Support Level | Resistance Level |
|---|---|---|---|
| Gold | International | $3650/oz | $3800/oz |
| Indian | ₹108,500/10 gm | ₹113,500/10 gm | |
| Silver | International | $42.5/oz | $45/oz |
| Indian | ₹127,000/kg | ₹140,000/kg |
-
National News2 weeks agoGST on gold, silver jewellery remains unchanged at 3%, with additional 5% on making charges
-
ShowBuzz4 hours agoShri Devendra Fadnavis unveils GJS – The Diwali Edition 2025 at JWCC, Mumbai
-
New Premises5 hours agoVasundhra Raj unveils showroom at Noida
-
DiamondBuzz6 hours agoAll non-natural diamonds to be labelled only as “synthetic: CIBJO
JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.