De Beers has recorded the lowest rough diamond sales in two years, with the company’s CEO Al Cook attributing the poor sales to macroeconomic challenges.
The Anglo-American company says it sold US$80m worth of rough diamonds for circle 9, which covers the period 4 October to 3 November 2023.
In cycle 8, from 18 September to 3 October 2023, the rough diamond sales were US$200m, while in cycle 7, between 14 and 29 August 2023, the sales were US$370m.
For the period 10 and 25 July 2023 (cycle 6), De Beers earned US$410m from rough diamond sales, and between 5 to 20 June 2023 (cycle 5), the company made US$450m.
Between 1 May and 16 May (cycle 4), rough diamond sales were US$480m, down from US$540m in cycle 3 from 27 March until 11 April 2023.
In cycle 2 (20 February and 7 March 2023), the sales were US$495m; in cycle 1 (16 to 31 January), De Beers recorded US$450m.
In 2022, De Beers enjoyed massive sales with US$660m earned in cycle 1, US$650m in cycle 2, US$650m in cycle 3, US$604 in cycle 4, US$650m in cycle 5, US$630m in cycle 6; US$630m in cycle 7; US$500m in 8eight and US$450m in cycle 9.
Cook said macro-economic challenges continue to affect the diamond sector and that the retail recovery in China remains slow.
He also said the voluntary import moratorium on rough diamonds into India would see extended Diwali holidays and factory closures in the world’s largest diamond-cutting centre.
“In recognition of these conditions, De Beers continued with reduced rough diamond availability in the ninth sales cycle of 2023,” Cook said.
He added that De Beers maintained support for its Sightholders with full purchase flexibility as the midstream re-establishes an equilibrium between wholesale supply and demand.
On 5 October 2023, Cook said De Beers reduced its rough diamond availability and made sales of US$200m as the industry’s midstream rebalances certain areas of stock accumulation.
He also would invest an additional US$20m in natural diamond marketing to help drive consumer demand during the holiday season.
