De Beers has announced a decline in rough diamond sales, citing economic difficulties in key markets and seasonal industry trends.
The company’s fifth sales cycle of the year generated $315 million, a significant decrease from the previous year’s figures and the preceding months of this year.
Sales Figures and Market Conditions
The June sales cycle saw a 31% decrease compared to the same period in 2023. This figure is also 18% lower than the $383 million reported in May and 29% lower than April’s total. Despite efforts to stabilize sales by reducing prices for smaller rough diamonds in the previous cycle, no such price adjustments were made in June. This led to some deferrals and refusals, according to sources within the industry.
De Beers highlighted that the summer months typically experience a lull in rough diamond sales. CEO Al Cook commented, “The northern summer is generally a quieter period for rough-diamond sales, and this was reflected in our cycle 5 sales.” He also noted the mixed signals from different markets, stating, “The recent annual JCK jewelry show in Las Vegas confirmed a resurgence in retailers’ interest in natural diamonds in the US, but ongoing economic growth challenges in China mean we continue to expect a protracted U-shaped recovery in demand.”
Strategic Insights and Future Outlook
The sales figures for June included both the sights held in Botswana from June 10 to 14 and auction sales. The next sight is scheduled for July 22 to 26. De Beers anticipates that market recovery will take several years.
Last month, Anglo American, the parent company of De Beers, announced plans to divest from De Beers. This move is part of Anglo American’s broader objective to create more value within its business operations. Despite offers from BHP to acquire the entire Anglo American business, these proposals have been declined to date.
