De Beers Sales Down but on Road to Rebound

Proceeds at De Beers’ third rough-sales cycle of the year remained sluggish compared to a year earlier but continued to see improvement despite entering a traditionally slow period for the industry.

The miner brought in $445 million in April, down 18% versus the equivalent period in 2023, it said Wednesday. However, that figure is 3% higher than the $431 million the company reported at its second sight of the year, which ran from February 26 to March 1, and 19% higher than the January sight.

April is generally a quieter period for buying rough, following post-holiday restocking at the start of the year. However, the continued rise between sights shows a distinct trend toward recovery in the market after months of slow demand, oversupply in the midstream and hesitancy from retailers to purchase polished.

The upswing also comes amid economic challenges and the growing preference for plain gold jewelry in mainland China, one of De Beers’ bigger markets.

“Many diamond businesses are continuing to take a cautious approach to purchases amidst the uncertain economic landscape and the slow pace of growth in China,” said De Beers CEO Al Cook. “However, we saw a further uptick in our rough-diamond sales in our third sales cycle, ahead of what is usually a slower period for rough-diamond demand in the second quarter of the year.”

The figures include the sight, which took place in Botswana from April 2 to 5, as well as auction sales. De Beers’ next sight is scheduled to run from May 6 to 10. In its most recent results, released February 22, the miner reported revenue slid 36% to $4.27 billion in 2023. Sales volume dropped 19% to 24.7 million carats, and the average price slipped 25% to $147 per carat.

Main mage: A De Beers sight. (Ben Perry/Armoury Films/De Beers)