De Beers Sales Improve, but Still Down at February Sight

Proceeds at De Beers’ second rough-sales cycle of the year remained sluggish compared to a year earlier but continued to see improvement as demand in India picked up.

The miner brought in $430 million in February, down 13% versus the equivalent period in 2023, it said Wednesday. However, that figure is 15% higher than the $374 million the company reported at its first sight of the year, which ran from January 15 to 19, and more than three times higher than the final sight of 2023.

While the total is lower than average for this time of year, which generally includes post-holiday restocking, it shows a recovery following months of slow demand, oversupply in the midstream and hesitancy from retailers to purchase polished.

The uptick is primarily due to the recovery of the diamond-jewelry market in India, De Beers noted. The retail segment in other top countries remains slow.

“Ongoing economic uncertainty in the US has led to retailers restocking conservatively after the 2023 holiday season,” said De Beers CEO Al Cook. “Consumer demand for diamond jewelry is growing in India but remains sluggish in China.”

A return to normal market conditions will likely be a slow process, Cook explained.

“Overall, we expect that the ongoing recovery in rough-diamond demand will be gradual as we move through the year,” he added.

The figures include the sight, which took place in Botswana from February 26 to March 1, as well as auction sales. De Beers’ next sight is scheduled to run from April 2 to 5. In its most recent results, released February 22, the miner’s reported revenue slid 36% to $4.27 billion in 2023. Sales volume dropped 19% to 24.7 million carats, and the average price slid 25% to $147 per carat. Parent company Anglo American issued a net impairment of $1.56 billion on De Beers’ value following the losses. It also wrote down the value of the miner’s rough inventory by $200 million.

Main image: Rough diamonds in packets. (Ben Perry/Armoury Films/De Beers)