(Bloomberg) -- Anglo American Plc has cut its diamond production target for the year as the industry continues to struggle with too much inventory after a disastrous 2023.

The sector almost came to a complete standstill in the second half of last year as Anglo-owned De Beers and Alrosa PJSC all but stopped supplies in a desperate attempt to stem a slump in prices. While those efforts helped the market to pick up a bit, it led to soaring stock levels at the two biggest diamond miners.

Even as demand slowly recovers this year, that inventory is taking time to clear. 

Anglo said Tuesday that its De Beers unit will now aim to produce 26 million to 29 million carats this year, down from a previous target of as much as 32 million carats.

The mining company maintained the rest of its production goals.

The more stable output will be a relief after the company stunned the market late last year, when it announced deep production cuts across its portfolio to reduce costs and deal with operational challenges.

Anglo’s shares slipped 1.8% in London trading, in line with a wider selloff in mining stocks.

(Updates with shares in last paragraph)

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