But there is robust demand for diamond jewellery in USA and China
The second wave of the COVID-19 pandemic that is continuing to claim lives in India has affected De Beers’ fourth sales cycle of 2021, this publication has established.
For weeks, the South Asian country has battled a devastating second wave of COVID-19 that has crippled its health system and led to shortages of oxygen supplies, hence its overwhelming daily deaths. According to a report released by De Beers’ parent company, Anglo American, this has led to reduced midstream capacity and subsequently lower rough diamond demand during what is already a seasonally slower time of year for midstream purchases.
The majority of the world’s diamonds are cut and polished in India. “Our thoughts are with all those in India as the country navigates the current challenges presented by the pandemic – reminding us that the road ahead remains uncertain and that we must continue to adopt a watchful approach,” De Beers Chief Executive Officer, Bruce Cleaver, noted in an Anglo American report released recently.
However, Cleaver said De Beers is continuing to see robust demand for diamond jewellery in its key US and China consumer markets. De Beers’ value of rough diamond sales (global sight-holder sales and auctions) for the fourth sales cycle of 2021 amounts to $380 million. Cycle 4 2021 provisional sales value represents sales as at 18 May 2021.
“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 fourth sales cycle of 2021, with the sight event extended beyond its normal week-long duration,” Anglo American said in the report.
“As a result, the provisional rough diamond sales figure quoted for Cycle 4 represents the expected sales value for the period 3 May to 18 May and remains subject to adjustment based on final completed sales.”
De Beers Group is a multinational company that specializes in diamond exploration, diamond mining, diamond retail, diamond trading and industrial manufacturing. The company is owned by Anglo American (85 percent) and the Government of Botswana (15 percent).
De Beers Group and its partners produce around one third of the world’s rough diamonds by value. It sells rough diamonds to global diamantaires through its diamond trading and auctions businesses. It sells polished diamonds and diamond jewellery via its Forevermark and De Beers Jewellers businesses.