The diamond market face pricing pressure: Lucara

Aug 23, 2025

Lucara roughIn the recently released Lucara Diamond Corp’s reports & its results for the quarter ended June 30, 2025, analysed the Diamond Market. Lucara said, the long-term outlook for natural diamond prices remains cautious as the market continues to navigate structural shifts. Prices of lab-grown diamonds have continued to decrease in 2025 with production outweighing demand. Global natural diamond production is forecasted to decrease, following significant production guidance cuts by the major diamond producers.

In the near term, premium-grade natural diamonds are showing renewed strength, supported by limited global supply growth and strong performance at international trade shows. However, mid-range and lower-grade stones continue to face pricing pressure due to high inventories, cautious consumer sentiment, and the rapid rise of lab-grown diamonds.

Encouraging sign are emerging in the recovery of the Chinese diamond market, which, if remain consistent, will support improved demand dynamics in the quarters ahead.

In the row, Lucara 2Q report highlight said, operating margins of 65% were achieved, a 2% decrease from operating margins of 67% in Q2 2024. The decrease in operating margins was driven by a 6% increase in revenue and a 12% increase in operating expenses, which reflects the cost of inventory sold during the period.

Operating cost per tonne processed was $26.76 per tonne, a 2% increase compared to the Q2 2024 operating cost of $26.32 per tonne. The continued impact of inflationary pressures, particularly labour, has been well managed by the operation. Operating cost per tonne processed is a non-IFRS measure.

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