De Beers sales plummet to lowest as they sold the fewest diamondssince they stopped selling them all during the worst of the global pandemic. The industry is having a hard time with low demand and too much inventory.
At the end of October, De Beers only sold $80 million worth of rough diamonds. This is down from $454 million the previous year. People who bought stones from Anglo American Plc were told they could pretty much refuse to buy all the stones they were supposed to buy at the last two sales of the year.
The famous diamondcompany De Beers had a big drop in rough diamond sales, with income dropping to $80 million in its most recent sales cycle. India's voluntary import freeze made this big drop even bigger. These are the lowest numbers since the peak of the COVID-19 disaster in 2020. The total amount of moneysold at fairs and in person in October was 82% less than the same time last year. This was after a 60% drop from the $200 million in sales the month before.
The diamond businessis still having problems because demand is still low after the pandemic because people are spending their money on travel and experiences instead. In important countries like the US and China, where the economy is weak, people are spending less on luxury items. Lab-grown diamonds are another thing that is changing the market and having an effect on sales of standard diamonds.
Russia's Alrosa PJSC, which is De Beers' main rival, stopped all sales in September because demand had dropped, especially from Indian buyers who cut or polish about 90% of the world's diamonds. After that, India stopped importing a lot of diamonds, which made the market even tighter.
At first, the drop in diamond prices only affected bigger stones that are popular in the US wedding market. But now, the sharp drop has spread to smaller items as well. As a result, Indian cutting shops have stopped buying things to try to get rid of their extra stock.
De Beers has 10 sales cycles a year, and buyers, who are called "sight holders," usually agree to the prices and amounts that are offered. However, De Beers has given sightholders more freedom by letting them refuse sales without having a big effect on their future allocations. This is because De Beers is aware of the problems in the market right now. CEO Al Cook talked about how economic problems like China's retail sector's slow recovery and India's short import freeze, along with the fact that many factories were closed for longer than usual during the Diwali holidays, were still having an effect.
In response to these conditions, De Beers continued with reduced rough-diamond availability in the ninth sales cycle of 2023. We maintained support for our sight holders, offering full purchase flexibility as the midstream works to rebalance wholesale supply and demand.- Al Cook
By controlling the supply and allowing for freedom, De Beers was able to keep rough-diamond prices stable after they had gone down earlier. Later this month, the company will give sight holders information about the 2024 assignments. This will give them a very important look into the future of the industry.
The De Beers Group, which is the biggest diamond-digging company in the world, has had its worst sales of the year. In 2023, De Beers sold the fewest rough diamonds. The company also stated that it sold the second-fewest diamonds since it started keeping track of sales at auctions and in person in 2016.
The company went into more detail about what was going on, saying that manufacturers bought a lot of rough at the beginning of 2022 because they thought buyers would keep buying it.