De Beers, the world’s largest diamond producer, has reported a significant increase in sales of rough diamonds in its latest sales cycle, signaling a recovery in demand after the adverse effects of the Covid-19 pandemic. Sales have risen by more than 12%, according to De Beers’ parent company, Anglo American. These promising figures can be attributed to the easing of Covid-19 restrictions and the approaching festive season in December.

Throughout the pandemic, De Beers has faced numerous challenges including a decline in sales and prices. The imposed lockdown measures prevented buyers from visiting sale sites, leading to a severe blow to the diamond industry. In response to these challenges, the company had to implement job cuts and restructure its operations.

During the latest sales cycle, De Beers recorded sales of $450 million, a notable increase compared to the $400 million achieved in the same period last year. However, it experienced a slight decline from the $467 million sold in the previous cycle. Bruce Cleaver, the CEO of De Beers, expressed optimism and believes that reasonable demand will persist throughout the holiday season. He also highlighted the stable consumer demand for diamond jewelry in the United States and China.

Industry analysts from Jefferies have referred to the sales numbers as a “small victory” and have predicted that prices and demand for De Beers’ rough diamonds will rise in 2021. They anticipate a 10% decrease in production over the coming year and expect demand to improve as economies recover from the impact of the Covid-19 pandemic. This positive outlook indicates that a turning point may be approaching for Anglo American.

Additionally, Petra Diamond Ltd, a rival diamond producer operating in South Africa and Tanzania, has also confirmed the signs of improvement within the diamond market. However, both companies have expressed concerns about the resurgence of Covid-19 in certain regions, as it has the potential to jeopardize the fragile signs of recovery.

Overall, the rise in diamond sales by De Beers reflects a recovering market as Covid-19 restrictions are gradually lifted and the holiday season approaches. The positive outlook from industry analysts suggests that the diamond industry may be on track to regain its strength in 2021. However, challenges still lie ahead due to the ongoing impact of the pandemic.

Useful links:
1. De Beers official website – provides more information about De Beers, its operations, and its diamond products.
2. Anglo American official website – offers insights into Anglo American, the parent company of De Beers, and its global mining operations.