Petra Diamonds has announced the postponement of its first tender for the 2025 financial year, originally scheduled for August and September. The decision comes as the diamond industry grapples with softening demand and oversupply concerns.
The London-listed company will defer all South African goods from the tender, combining them with parcels to be offered at its second tender, expected to close in mid-October. The schedule for the tender from its Williamson mine remains unchanged.
Petra CEO Richard Duffy stated that the postponement is a proactive measure aimed at supporting efforts by major diamond producers to limit supply during a period of weaker demand. “We have taken the decision to defer the upcoming tender from our South African operations to support steps taken by major producers to restrict supply in this weaker demand period,” he said.
The company believes that supply discipline, coupled with anticipated stronger demand during the festive season, will contribute to price stabilization later in the year. Petra has assumed diamond prices of $125 to $135 per carat for Cullinan and $98 to $105 per carat for Finsch for the 2025 financial year.
The decision to postpone the tender reflects the challenging conditions faced by the diamond industry. Weakening consumer sentiment, particularly in key markets like China, has led to a decline in diamond demand. By reducing the supply of rough diamonds, producers aim to support prices and improve market conditions.
Petra’s move follows similar actions by other major diamond producers, underscoring the industry’s concerted effort to address the current oversupply issue. While the postponement of the tender may have short-term implications for the diamond pipeline, it is seen as a necessary step to stabilize the market and ensure the long-term health of the industry.
Sources:
www.lse.co.uk
www.rapaport.com