Rough diamonds to go up- De Beers

De Beers, a leading rough diamonds producer anticipates increased sales on rough diamonds in the month of June as demand for diamond jewellery looks positive in major consumer markets.

The company announced that the provisional value of rough diamond for the fifth sales cycle of 2021 is $ 470 million while in the fourth cycle the actual sales was 385 million. Last year, the company recorded only $ 56 million in both cycles four and five. De Beers Group Chief Executive Officer, Bruce Cleaver said they have seen strong demand for rough diamonds during the fifth sales cycle as demand for diamond jewellery in the key consumer markets of the US and China continues to be positive, and midstream capacity in India returning. “Overall sentiment is increasingly optimistic as we move towards the second half of the year and, while risks as a result of the global pandemic persist, we have been encouraged by the condition of the market.” He said owing to the restrictions on the movement of people and products in various jurisdictions around the globe, De Beers Group has continued to implement a more flexible approach to rough diamond sales during the fifth sales cycle of 2021, with the Sight event extended beyond its normal week- long duration. In its production report for the first quarter of 2021, De Beers production in Botswana decreased by 12 percent to five million carats, driven by a 24 percent reduction at Orapa mine. The company explained that the decrease in production was due to a lower grade feed to the plant in response to heavy rainfall and operational issues including continued power supply disruptions. In the first quarter last year, the company produced 5.6 million carats. “Rough diamond production decreased by seven percent to 7.2 million carats, driven by operational challenges, including excessive rainfall in southern Africa and a Covid- 19- related shutdown in Canada, as well as planned maintenance in Namibia,” states the company. In its customer survey report released in April this year, De Beers observed that more people are likely to purchase diamond jewellery in the next six months. “We have seen an increase in women saying that they feel safe shopping for diamond jewellery in person, with a decrease in feeling safest shopping online. Many also say they are spending more time connecting with friends and family outside the home, giving back through partaking in charity and community activities and taking on new hobbies. With this new level of optimism, we see an increased comfort level shopping, with consumers opting for pieces that represent enduring value.”