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Rough diamond sales show first signs of recovery after pandemic

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Latest figures from De Beers Group have revealed that the company’s rough diamond sales are beginning to outperform last year’s for the first time since the pandemic.

This comes via De Beers’ figures for its sixth and seventh ‘sales cycles’ for 2020.

Since the coronavirus and lockdown measures impacted most non-essential markets, De Beers had seen drastically reduced sales through most of the year.

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After a strong performance at the beginning of the year pre-pandemic, hitting $551 million (£430.6 million) in the first cycle, sales dropped to an all-time low in cycle three.

The company has reported that its sales have bounced back now, however,with cycle seven’s $320 million (£250 million) outperforming the same period in 2019, which only reached $287 million (£224 million).

De Beers Group noted that the provisional rough diamond sales figure quoted for cycle seven represents the expected sales value for the period 19 August-10 September, and remains subject to adjustment based on final completed sales.

Bruce Cleaver, CEO, De Beers Group, said: “Diamond markets showed some continued improvement throughout August and into September as Covid-19 restrictions continued to ease in various locations, and manufacturers focused on meeting retail demand for polished diamonds, particularly in certain product areas.

“Overall industry sentiment has become more positive as jewellers in the key US and Chinese consumer markets gained confidence ahead of the important year-end holiday season, supported by strong bridal diamond jewellery demand across markets.

“Accordingly, we saw a recovery in rough diamond demand in the seventh sales cycle of the year, reflecting these retail trends, following several months of minimal manufacturing activity and disrupted demand patterns in all major markets. It’s clear that the recovery is at an early stage and we expect that it will take some time to get back to pre-Covid-19 levels of demand.”

Tags : De Beersde beers grouprough diamonds cycle
Sam Lewis

The author Sam Lewis

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