DE BEERS ANTICIPATES JEWELLERY DEMAND
De Beers Group anticipates continued diamond jewellery demand this year, following the increased sales volume during the holiday season. During its half year ended December 2021, De Beers Group total sales volume increased to 36.3 million carats compared to 22.7 million carats recorded in the previous year. Total production volume for Botswana operations increased to 22.3 million growing from 16.5 million.
Presenting the results on Thursday, De Beers Group Executive Vice President, Paul Rowley said the diamond industry continued to recover from the impacts of the Covid-19 pandemic during 2021. He said during the first half of the year, consumer sales of diamond jewellery in the US and mainland China posted positive growth, not only on the Covid-19 affected sales in 2020, but also in comparison to 2019 before the onset of the pandemic. “The ongoing increase in consumer demand led to strong growth rates in consumer sales of diamond jewellery in the US, with holiday season sales increasing by about a third compared to 2020.” Rowley pointed out that the Group expectations for retail restocking in early 2022 are encouraging following the strong retail sales of diamond jewellery over the holiday season. “The growth in consumer demand for diamond jewellery is expected to continue, driven by the US, primarily due to continued economic recovery, higher accumulated savings and postponed marriages.” The group also expects rough diamond demand to remain steady as the midstream continues to operate with lower stock levels, manufacturing below full capacity but using a faster manufacturing cycle. Rowley highlighted that while the risks continue to be there, relating to the effects of Covid-19 across the pipeline, geo-political uncertainty and cost inflation pressures, sentiment in the midstream are expected to remain positive on the back of anticipated strong US retailer restocking in the first quarter.
In response to the impact of Covid -19, which disrupted sales due to lockdowns and movement restrictions, the group came up with efficient distribution of diamonds throughout the pipeline and saw increased online purchasing. “De Beers is well positioned to take advantage of these changes. The long term outlook for diamond jewellery demand remains positive.”