- Tsaone Segaetsho
De Beers has announced that the provisional value of its rough diamond sales in the fourth sales circle of 2024 was $380 million, a far cry from the $446m in the third cycle, and $479m in the fourth cycle of 2023.
This is a gloomy announcement for De Beers which divides each year into a series of 10 sales cycles of around five weeks each. The rough diamond sales have been going down since the first cycle of 2024 and the last cycle was $66 million more than the current one.
In the last cycle De Beers CEO explained that their main customers China having “slow pace of growth.” The third sales cycle was however a better record from the second cycle of this year which was at $431 million Al Cook calling it an “uptick.”
On Thursday Al Cook said the fall in rough diamond sales was expected. He further pointed his finger to the Asian market and this time it was India not China with the ripple effects to the falling rough diamond sales.
“As expected, De Beers’ rough diamond sales in the fourth cycleof the year trended lower, in line with the seasonally slower second quarter and a quieter periodof trading in India during the elections. The focus of the global diamond industry now turns towards the JCK jewellery show in Las Vegas at the end of May. Demand trends in the US are expected to be driven by short term macroeconomic issues but supported in coming years by a recovery in engagements as the after-effects of pandemic lockdowns fade.
While it is not clear that the diamond business, involving shareholders, like Botswana Government, has any impact in customers buying of diamonds, the gloomy report above comes in the backdrop of De Beers parent company, Anglo American, wanting to divest from the “failing” De Beers. On further De Beers business affairs, a day before announcement of rough diamond sales, there was a final rejection of takeover of Anglo American by an Australian company BHP. This was after two unsuccessful bids as Anglo American said BHP want to buy it for a song.
