De Beers’ revenues continued to rise at its August rough sale as diamond demand persisted in the most important retail centers, the miner reported
Proceeds from the seventh sales cycle of the year came to $515 million, the most since February, the company said Wednesday. That figure was 54% higher than the equivalent period of 2020, when the Covid-19 crisis was still sapping activity, and was slightly above the $514 million the miner garnered in July.
“Sentiment in the diamond industry’s midstream continues to be positive, and this is reflected in our sales for sight 7,” said De Beers CEO Bruce Cleaver. “Demand for rough diamonds is a result of robust demand for polished diamonds in our key markets of the US and China.” Midstream optimism was evident at the recent JCK Las Vegas show, which ”was a success despite being held under challenging circumstances,” Cleaver added, referring to the virus- related restrictions and travel bans.
The seventh sales cycle included proceeds from the latest sight, which began on August 23. Although it was scheduled to end on August 27, De Beers has been extending the length of its sight periods since the start of the pandemic. As such, the sales total includes transactions that took place until September 7. It also encompasses auction revenues.
The company maintained steady rough prices at the sight, market observers told Rapaport News. That followed five price increases in the eight months between December and July.
De Beers sales have bounced back from the downturn. Rough-diamond revenues have more than doubled year on year to $3.55 billion year in the first seven cycles of 2021, compared with $1.42 billion for the same period of 2020, according to Rapaport calculations based on the miner’s reports.
“As we now head towards a traditionally slower period for rough-diamond sales, we remain cognizant of the risks to economic recovery from the global pandemic,” Cleaver commented.