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De Beers Sales Rise Amid Market Recovery
Apr 24, 2017 4:20 AM
By Rapaport News
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RAPAPORT... De Beers’ rough-diamond sales and production grew in the
first quarter, signaling upbeat sentiment in the manufacturing sector.
Sales volume jumped 74% to 14.1 million carats, reflecting improved rough demand, the company said Monday.
The number of sights — contract sales events — also impacted the result, as there
were three this quarter compared with two during the same period last year, De Beers explained.
The increase in demand was especially notable for
lower-value products that had built up in the company’s inventory following a
drop in demand at the end of last year. Sightholders returned to buying these
smaller diamonds in January after holding back their purchases due
to the impact of India’s demonetization policy on liquidity in the manufacturing sector.
De Beers reported strong sales in January and slightly lower but steady sales in February and March. Its sales value increased by 2% year on year to $1.86 billion during the first three
sights, according to Rapaport calculations. Those sights followed a steady decline
in rough prices during 2016, when De Beers’ price index decreased 13%.
The company’s production increased 8% to 7.4 million carats
during the quarter, amid improved trading conditions and the addition of
diamonds from the new Gahcho Kué mine in Canada, which reached
commercial production on March 2.
The miner maintained its full-year production guidance of 31
million to 33 million carats.
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Tags:
De Beers, Gahcho Kué, Production, Rapaport News, Rough Diamonds
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