De Beers Reports 20% Drop in Sales
May 17, 23
(IDEX Online) - De Beers Group today announced a 20 per cent drop in rough sales for cycle 4, as global uncertainty persists and China's post-lockdown recovery falters.
Provisional revenue from sightholder sales and auctions was $480m, down from $604m for the same period in 2022. Sales for cycle 3 were $542m, up from $497m in cycle 2.
De Beers has postponed its main and interim auctions - which account for 10 per cent of its sales - for the next two cycles, after "careful consideration and analysis of the current market situation".
Last month Al Cook, De Beers Group CEO, spoke of "encouraging positive trends" in consumer demand, especially in China, where there were "some signs of recovery in consumer confidence".
But that recovery has not had lived up to expectations.
"Sales of our rough diamonds in the fourth sales cycle of the year saw a small decrease from the previous cycle as the industry has entered what is traditionally a seasonally quieter period," Cook said today.
"Rough diamond demand was also influenced by ongoing macroeconomic uncertainty and a slower pace of recovery in consumer demand from China than was widely anticipated."
Pic courtesy De Beers