(IDEX Online) - De Beers Group CEO Al Cook says natural diamond prices have stabilized and are now beginning to rise, as demand increases in key markets and global supply falls.

He made the comments in an interview with China Global Television Network (CGTN) while in Beijing on September 15 for the signing of the Beijing Declaration on Natural Diamonds and Sustainable Development.

"In the last few months, we've seen the price stabilize and begin to grow," Cook said.

He attributed the change to increasing demand for natural diamonds, particularly in the United States and India, and declining supply as older mines close.

"We're also seeing supply fall. Diamonds are getting rarer. Mines are closing because they're getting older. So we're seeing the supply fall by more than 10% at the moment," he said.

Cook said the combination of stronger demand and lower supply had resulted in price stabilization and made De Beers "very confident in price in the long term."

It's a stark contrast to De Beers' interim results, published in July, which showed its average realized rough-diamond price falling 32% year on year in the first half to $105 per carat, from $155 per carat. The company said its rough-diamond price index declined 16%, although it described pricing as relatively stable during the period.

Cook's comments suggest that De Beers believes the stabilization has developed into an early recovery in recent months.

De Beers executive Paul Rowley made a similar, although more limited, observation in August, saying natural diamond prices had fallen 20% to 30% from their post-pandemic highs but had stabilized, with prices for stones of two carats and above "started to increase significantly."

Cook also pointed to consumer demand in the United States and India as evidence of an improving market.

He said De Beers needed to rebuild trust in natural diamonds in China, identifying three priorities: demonstrating the importance of diamonds to trade between China and Africa, giving Chinese consumers confidence in the value of natural diamonds, and creating diamond designs that appeal to Chinese consumers.

The comments came during a major industry effort to strengthen the natural diamond industry's relationship with China. The Beijing Declaration recognizes China as an important consumer market and calls for closer links between African diamond-producing countries and Chinese consumers.

Cook also addressed the growing presence of lab grown diamonds and De Beers' decision to shut down Lightbox, its lab grown diamond jewelry business.

He said De Beers did not believe lab grown synthetic jewelry would make much money, but argued that synthetic diamonds have important applications outside jewelry. He specifically cited heat-transfer technology and quantum technology, saying De Beers and Chinese companies were increasingly moving production of synthetic diamonds from jewelry into technology.

He also drew a comparison between natural diamonds and gold, saying De Beers wanted consumers to see natural diamonds as more than beautiful objects and to recognize that they can also have value.

Cook pointed to China's gold market, where rising gold prices have encouraged consumers to buy the metal partly because they regard it as an investment. Cook said De Beers wanted to create a similar perception around natural diamonds, particularly by giving Chinese consumers greater confidence in their future value.

"Now is a great time to purchase natural diamonds," he said. "We believe because the price has fallen and now we're beginning to see it rise."

The Beijing Declaration on Natural Diamonds and Sustainable Development was signed on September 15 by the Shanghai Diamond Exchange, governments from Botswana, Namibia and South Africa, and members of the Chinese and international diamond industry. Cook attended the signing as CEO of De Beers.

Screengrab shows Al Cook on CGTN.