The Strategist

De Beers' Cycle 9 sales collapse to $80m amid two-month embargo in India

11/09/2023 - 10:09

De Beers' sales fell to $80 million in its ninth sales cycle this year, according to Anglo American plc, which owns De Beers.

This is about six times less than the previous year's record ($454 million) and 2.5 times less than the prior level ($200 million), which was an all-time low for the period.

The ninth cycle lasted from October 4 to November 3.

De Beers CEO Al Cook blamed the drop to a ban on rough diamond imports to India, which will result in the closure of cutting plants in the world's largest consumer of diamonds and the lengthening of holidays to coincide with the local holiday Diwali.

Furthermore, the diamond business is still being impacted by macroeconomic issues, as evidenced by the delayed revival of retail trade in China, according to De Beers' CEO.

As a result, De Beers has curtailed the distribution of rough diamonds to its cite holders, according to Cook. As the midstream rebalances supply and demand, the business continues to help clients by offering flexible purchasing arrangements.

India's cutting and polishing business, a main consumer of rough diamonds, is presently under pressure due to lower demand for polished diamonds amid the global economic slump, prompting Indian diamond cutters to urge a 2-month suspension of purchases from diamond miners.