In its ninth cycle of sales for 2023, the De Beers Group reported a provisional rough diamond sales value of $80 million.
This figure, subject to final adjustments, compares with $200 million in actual sales for Cycle 8 of 2023 and a significantly higher $454 million in the corresponding cycle of the previous year.
These numbers reflect the ongoing volatility in the diamond market.
CEO’s Market Analysis
Al Cook, CEO of De Beers Group, commented on the current economic climate’s impact on the diamond sector. “Macro-economic challenges continue to affect the diamond sector. The retail recovery in China remains slow. And the voluntary import moratorium on rough diamonds into India will see extended Diwali holidays and factory closures in the world’s largest diamond cutting centre,” he stated.
Cook highlighted the company’s decision to reduce rough diamond availability in Cycle 9 of 2023, a strategic move acknowledging the sustained pressure on the industry. De Beers has offered its Sightholders full purchase flexibility, a gesture aimed at supporting partners as the industry seeks a new balance between supply and demand.
The decision to limit diamond availability and continue offering purchase flexibility indicates De Beers’ strategy to navigate through the current downturn. This approach is also consistent with the firm’s historical practice of stockpiling diamonds during periods of excess supply to prevent market oversaturation and further price declines.
Implications for the Diamond Trade
For jewellers, these developments from De Beers signal a need for careful navigation through a period marked by economic uncertainty and shifting consumer trends. With major cutting centers facing disruptions and the company managing supply closely, jewellers may experience changes in rough diamond availability and pricing.
As the diamond market endures these fluctuations, jewellers must remain agile, adjusting their procurement and sales strategies accordingly. The industry’s focus is now on how these strategic moves by market leaders like De Beers will shape the landscape in the coming months, especially as the holiday season approaches and retail activity typically increases.