Namibia’s rough diamond export earnings declined by 27.8% quarter-on-quarter and 32.7% year-on-year to N$2.8 billion in the third quarter of 2024, the Bank of Namibia (BoN) has disclosed in its latest Quarterly Bulletin.
The decline was attributed to reduced export volumes and lower realized prices, driven by an oversupply of diamonds in the midstream and weakened global demand from major markets such as the United States and China.
“The decline in rough diamond export earnings was due to lower export volumes and realized prices. This was on the back of weakened global demand from key downstream markets, including the US and China,” the report stated.
Adding to the challenges, competition from lab-grown diamonds and elevated inventory levels in the midstream further exacerbated the drop in earnings.
Diamond production also fell during the quarter, declining 6.3% quarter-on-quarter and 1.5% year-on-year to 525,719 carats. The contraction was primarily due to deliberate reductions in production at Debmarine Namibia, partially offset by improved mining of higher-grade ore at Namdeb.
“The slowdown in diamond production was ascribed to intentional action to lower production at Debmarine Namibia, partially offset by planned higher grade mining and better recoveries at Namdeb during the quarter under review,” BoN noted.
The report also highlighted prolonged depressed consumer demand in China and persistently high inventory levels as contributing factors to the subdued trading conditions in the diamond market.
