In January De Beers’ rough diamond sales reached $650 million, the highest monthly total since 2018. This was in part due to manufacturers replenishing their stock following the holiday season. Despite the company's recent price increase in rough diamonds, revenue is up 18% y-o-y, and 44% above the $452 million it reported in December 2020.
These figures comprise of the sales that took place in January till February 2, as well as at the sight and auctions. The sight was held in Botswana and hosted viewings in Antwerp and Dubai due to travel limitations. Last month De Beers announced a price hike of 4 to 5% in response to the improving balance between supply and demand.
The sight in January is usually one of the biggest of the year, especially after a positive holiday season. Even so, this year’s opening sale exceeded results going back to January 2018, when revenues came to $672 million.
“With the midstream starting the year with low levels of rough and polished inventories, and following strong sales of diamond jewelry over the key holiday season in the US, we saw good demand for rough diamonds at the first cycle of the year as midstream customers sought to restock and to fill orders from retail businesses,” said Bruce Cleaver, De Beers CEO. “Sales of rough diamonds are also being supported by expected demand ahead of Chinese New Year and Valentine’s Day.”