Alrosa, De Beers note muted demand for diamonds

| May 29th, 2019

Alrosa, De Beers note muted demand for diamonds
"Alrosa, De Beers note muted demand for diamonds"

Diamond sales for both De Beers Group and Alrosa are lagging behind last year due to macroeconomic conditions and continuing issues with financing in India, the companies said.

De Beers announced Tuesday that in its fourth sales cycle of the year, sightholders and auction customers purchased $415 million in rough diamonds, a 25 percent drop from $554 million in the same period last year.

It is also a decline from the third sales cycle when rough diamond sales reached $581 million.

To date in 2019, De Beers’ rough diamond sales have totaled $1.99 billion, down from $2.31 billion in the same period last year.

CEO Bruce Cleaver pointed to the “backdrop of macroeconomic uncertainty” and noted that the industry is entering a seasonally slower period for rough diamond sales because factories in India will close for the standard summer break.

Here is a chart outlining De Beers’ sales so far in 2019.

20182019
First sales cycle$672 million$500 million
Second$563 million$496 million
Third$524 million$581 million
Fourth$554 million$415 million (provisional)
Fifth$581 million
Sixth$533 million
Seventh$503 million
Eighth$482 million
Ninth$442 million
Tenth$544 million

Meanwhile, rival Alrosa reported last week that April sales of rough and polished diamonds totaled $318.7 million, down 21 percent from sales of $405.3 million in April of last year.

Rough diamond sales amounted to $315.8 million, compared with $396.2 million in April 2018, while polished sales declined more sharply, dropping from $9.1 million to $2.9 million.

Year-to-date, Alrosa has sold $1.32 billion in rough and polished diamonds, down 34 percent from $2.01 billion at this point last year.

Read full article

Source National Jeweler

Page top