LGDs’ growth worsens the market: BoD

 

Global diamond demand remains uneven in 2025  

Recently in the second week of December 2025, John Teeling, Chairman, Botswana Diamonds [BoD] reviewed diamond market at the occasion of announcing their, Annual Results for the Year Ended 30 June 2025. He said, I am pleased to present the Chairman’s Statement for the year ended 30th June 2025.  

This has been a very difficult year for the diamond industry but a year of significant progress for Botswana Diamonds plc, characterised by strategic expansion, the adoption of advanced technologies, and the strengthening of our asset base across both diamond and critical metal exploration. We enter the next phase of our development with renewed confidence, a broader portfolio, and a roadmap for value creation.  

Under the Market Overview, he said, the Global diamond industry experienced another challenging year, characterised by muted consumer spending and continued uncertainty in several major markets. Demand in China remained soft, while the United States, the world’s largest consumer market, saw slower jewellery sales due to inflationary pressures and broader economic caution.

The situation was exacerbated by growing supply of lab-grown diamonds (LGDs), which continued to compress prices in the lower-to-mid-value segments of the natural diamond market. However, the negative effects were most pronounced in categories where volume outweighs rarity. Importantly, BOD’s exploration portfolio is aimed at higher-value stones, where natural diamonds retain strong consumer preference and pricing resilience.  

By recollecting the activities during the year, John Teeling said, Indian polishing activity slowed significantly due to elevated inventories and softer U.S. demand. Later in the year, manufacturing activity picked up as inventory levels normalised, contributing to improved sentiment.  

Several major producers introduced temporary production cuts and sales pauses, which helped reduce surplus stocked and stabilised prices. The pre-Valentine’s Day sales cycle exhibited signs of renewed momentum as cutters and polished restarted operations.  

While global diamond demand remains uneven, the longer-term supply fundamentals remain favourable. Many alluvial and small-scale operations worldwide are uneconomic, reducing natural supply. Major producers are approaching peak output from existing mines and new large-scale kimberlite mines are few.  

These dynamics underpin BOD’s strategy of focusing on value over volume and investing in geologically robust, high-potential assets in stable mining jurisdictions.