Rough diamond sales by Anglo American division, De Beers, plummeted in the ninth sales cycle of the year to $80 million (R1.5 billion) amid numerous micro-challenges.
This was 82% lower compared to as De Beers sold $80 million of diamonds in the ninth sales cycle of the year, compared with $454m in the ninth cycle of 2022. The diamond miner sold $200m in the eighth cycle of 2023, making the sales 60% from the previous month.
The provisional rough diamond sales figure quoted for Cycle 9 represented the expected sales value for the period between October 4 and November 3 and remains subject to adjustment based on final completed sales, Anglo said.
Al Cook, the CEO of De Beers, said: "Macro-economic challenges continue to affect the diamond sector. The retail recovery in China remains slow. And the voluntary import moratorium on rough diamonds into India will 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. De Beers maintained support for its Sightholders with full purchase flexibility as the midstream re-establishes an equilibrium between wholesale supply and demand," he said.
The Passive Income Guy (@hazelwood_dave) posted on X, “De Beers diamond sales seem pretty disastrous. At a time when luxury demand is robust, they blame macro economic factors.”
Diamond demand has weakened after the pandemic, as consumers splash out again on travel and experiences, while economic headwinds eat into luxury spending.
Lab-grown stones are also becoming a competitive threat to rough diamonds.
BUSINESS REPORT