De Beers Group today announced the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the fourth sales cycle of 2017, provisionally valued at $520 million. The fact that sales remain solid as the summer slowdown looms indicates continuaing upbeat sentiment in the manufacturing sector, spurring demand. Cycle 4 sales were down 11% from the revised figure of $586 million sold at the last sight (contract sales session) and slipped 18% from the fourth cycle a year ago.
The De Beers Group today announced the (provisional, as of April 3) value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the third sales cycle of 2017, earning $580 million. This represents a nearly 5% increase over the value of sales in Cycle 2, and nearly a 13% decline from Cycle 3 2016.
The De Beers Group of Companies has announced the (provisional) value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the second sales cycle of 2017 has earned $545 million. This represents a 25% dropoff from the $729 million achieved in Cycle 1, and is nearly 12% lower than in Cycle 2 2016, which earned $617 million. Nonetheless, excluding January 2017, it is the largest sales cycle since September of 2016.
Provisional rough diamond sales at De Beers Cycle 1 sight of 2017 earned $720 million, the highest total sales in more than a year. This represents a more than 70% uptick from the last sight, Cycle 10 in 2016, and is 32% higher than first Cycle sales ($545M) of 2016. Bruce Cleaver, CEO, De Beers Group, said: “We saw good demand across the majority of our assortment during the first sales cycle of the year, as the industry entered the period when rough diamond demand is traditionally strongest.
Diamond traders from all around the world are on their way to Botswana for one of the biggest annual sales as the $14 billion industry attempts to recover from India’s demonetization. India processes as much as 90% of the worlds rough diamonds with the purpose of being cut, polished or traded, but the steady supply of diamonds for its manufacturing industry has come under pressure as a result of the currency crisis.
De Beers (provisionally) sold $418 million in rough diamonds at its final sight (Cycle 10) of 2016, the smallest sight of the year as the trade winds down for the holidays. This is a 12% decline from the Cycle 9 Sight, but represents a 68.5% rise from the Cycle 10 Sight of 2015.
JCK's Rob Bates reports that De Beers is introducing a significant change to the 'take it or leave it' policy of its traditional sight system, as they will be, "experimenting with offering sightholders boxes made to order for their needs. Traditionally," writes Bates, "De Beers has separated its product into 120 standard assortments. And while that continues, it is also working with certain clients to create tailored mixes." He then explains that, "This represents a significant break from how things have generally worked in the century-old sight system.
The De Beers Group of Companies today announced the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the eighth sales cycle of 2016, with the provisional sales figure coming in at $485 million. This represents a 24% decline from the $639 million sold in cycle 7.
ALROSA Vice-President Yuri Okoemov said that the diamond miner is developing a marketing policy concept for the upcoming three-year sales period. It will take into account developments over the past three years and the changing global markets, he said in an interview with the company's corporate magazine. Okoemov did not reveal any details about ALROSA's sales policy for the next three-years, but noted that the company expects "to maintain its share of sales under long-term contracts at a level of not less than 70%".
De Beers Group has reported that rough diamond sales at its seventh sight in 2016 amounted to $630 million (provisional), rebounding from its slowest cyle of the year.
In an in-depth analysis, Rapaport's Avi Krawitz maps who is buying rough from the four main diamond producers, De Beers, Alrosa, Rio Tinto and Dominion Diamonds, combined accounting for an estimated 60% of global rough supply.
The De Beers Group of Companies today announced the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the fifth sales cycle of 2016, showing provisional sales of $560 million, down 12% from the $636 million in sales during cycle four in May. Philippe Mellier, Chief Executive, De Beers Group, said: “Sales in the fifth cycle of the year were somewhat lower than in the fourth cycle, in line with our expectations and typical seasonal demand patterns.
Will the diamond industry see more of the same with the appointment of Bruce Cleaver as the new CEO of De Beers following the departure of Philippe Mellier, asks Charles Wyndham in his latest commentary on polishedprices.com. Mellier succeeded in 2014 when De Beers was the only division of Anglo American that met the mother-company's target of a 15% return on capital employed. "The only problem was that reaching that target nearly wiped out the whole industry, a sort of wonderful coup de grace.
De Beers has officially announced the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the fourth sales cycle (sight) of 2016 at a provisional $630 million, while the third sales cycle figure was $666 million. The fourth sales cycle took place last week. In the first four months of this year De Beers sold more than $2.4 billion of rough goods as demand for manufacturers has soared.
The global diamond market faces a “fragile recovery” in spite of efforts by De Beers to create stability, according to De Beers CEO Philippe Mellier in a report by the Financial Times. “It’s a very fragile recovery. The market is not going to bounce back like it did after the last big problems,” he said, referring to the recovery after 2009, when De Beers cut output by half following the global financial crisis that hit diamond buying. The world’s largest diamond producer by value supplied 28.7 million carats of rough to the sector last year.
The preliminary results of Alrosa's April trading session with long-term clients was "somewhat weaker" than the March session, Alrosa President Andrei Zharkov said in an interview with Interfax. "We still have not summed up the results. But according to preliminary data, the April session should be somewhat weaker than March," he said. For January-March of this year Alrosa sold rough diamonds for a sum no less than $1.3 billion ($1.1 billion a year earlier), with approximately the same levels each month.
Botswana’s Central Statistics Office (CSO) reported that diamond mining production slumped by 33% during the third quarter of last year due to mines that were closed in response to falling rough diamond prices on world markets. Debswana, jointly owned by De Beers and the Botswana government which mines the vast majority of the country's diamonds, reduced output level at Orapa Plant 1 and also closed the Damtshaa mine.
The De Beers Group has officially announced the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for the third sales cycle (sight) of 2016 at a provisional $660 million, while the second sight figure was $617 million. The third sales cycle took place last week. In the first three months of this year De Beers has sold $1.8 billion of rough goods as demand has surged.
De Beers put up prices of its rough stones for the first time in more than a year as it detects rising demand for its goods. The miner raised prices by up to 2% at its latest sight taking place this week, according to three people familiar with the process cited by Bloomberg Business. The value of the sale may be similar to De Beers’ previous sight in which it sold $610 million of rough diamonds. In January, the miner sold $545 million of diamonds.
Diamond industry analyst Ehud Arye Laniado analyzes the current state of the industry after hearing that ALROSA's third sales period of the year is currently estimated at $300 million-$350 million, about half of what De Beers supplied in February. The key question is whether the $3 billion in rough diamonds already sold by the major miners in the first quarter of 2016 genuinely indicates increased demand and that the market is getting back on its feet. Thus far he has concluded it does not.
ALROSA sold about $780 million worth of rough diamonds during its first two sales of the year as demand for rough improved, a market source told Rapaport News. Prices in February were unchanged for the sixth month running, according to Rapaport records. The report follows a De Beers announcement on Tuesday that it sold $1.155 billion of rough stones in the first two months of this year.
Despite the extreme challenges presented by a ‘perfect storm’ of problems during 2015 which presented a variety of challenges for the sector as a number of unexpected issues came to pass at the same time which led to a situation of "inventory indigestion", it was encouraging to see how swiftly and decisively the diamond industry was able to respond and positive results are already being seen, De Beers CEO Philippe Mellier said in a bankers' briefing delivered in Mumbai.
De Beers has announced that its rough diamond sales (Global Sightholder Sales and Auction Sales) for the second sales cycle in February 2016 were $610 million, a 12% increase over the $545 million sold at the first cycle in January.
Mining giant Anglo American, which owns 85% of De Beers, may sell the diamond miner's historic London headquarters, thus firmly bringing about the end of an era for the world’s largest diamond mining company, GemKonnect reported. De Beers’ huge complex in Charterhouse Street, close to the Hatton Garden diamond district, could be added to the assets for sale by Anglo American which last week published a wide scale break-up of the mining giant after reporting the biggest loss in its 99-year history. De Beers' London property could raise around $180 million.
Diamond industry veteran Ehud Laniado said he and other market players expected the strong demand seen in January for rough diamonds to fizzle out before February, but instead the increase in demand has been sustained. He says current market conditions are characterized ongoing strong demand from De Beers’ Sightholders, with the second Sight of the year, opening today (Monday), expected to be similar in size to the January Sight, at around $500 million.
Diamond specialist Ehud Arye Laniado takes an informative look at the options for purchasing and selling rough diamonds, explaining the advantages and disadvantages of each. "Manufacturers essentially have two alternatives when it comes to buying rough diamonds. They can either buy directly from mining companies, or they can buy from others companies in the secondary trading market." Mining companies (producers) sell their diamonds either through a "sight" system or through tenders and auctions.
"The world’s two biggest diamond miners just sold $1 billion worth of gems and it’s making smaller rivals nervous," write Kevin Crowley and Thomas Biesheuvel for Bloomberg Business, and the size of De Beers' ($540m) and Alrosa's ($450m) January sales "far exceeded everyone’s expectations." One concern is that the sales were driven not by consumer demand, but rather by supply cuts last year that led to shortages and lower prices.
The unexpectedly sharp rise in rough prices and demand for goods in January, with De Beers and ALROSA together selling around $1 billion of goods and seeing demand for much more, got Charles Wyndham around to thinking about the sight system and how the industry's sales methods could be changed.
Small and medium diamantaires will have another opportunity to participate in the viewing for a rough diamond tender auction from 8-16 February to be conducted by De Beers Auction Sales, an online auction subsidiary of De Beers group, writes Times of India. The viewing will be held at the special notified zone (SNZ) in Mumbai. De Beers sells a little less than 10% of its rough diamond through its online subsidiary De Beers Auction Sales. The remaining 90% goes via long-term contracts that are sightholdings.
Diamond industry analyst Avi Krawitz addresses the bouyant rough diamond sales by De Beers and ALROSA in January, but notes that this has led many to wonder whether it is sustainable. To wit, does the seemingly improved sentiment truly reflect rising consumer demand, or is it another case of overreach on the part of manufacturers? For while "sightholders were quick to point out that the market mood is currently “much more positive,” it is important that stakeholders are aware of the factors that have underpinned the sudden turnaround in rough diamond demand."
Alrosa extended its January diamond offering and is set to sell about double the amount originally planned, boosting supplies to the market, according to two people with knowledge of the matter, write Thomas Biesheuvel and Yuliya Fedorinova for Bloomberg Business. Russia’s state-backed producer will probably sell $450 million to $500 million in its first sale of the year, said the people, who asked not to be identified because the information is private. The sale has lasted longer than the typical 10 days, the people said.
Diamond industry analyst Edahn Golan breaks down how De Beers arrived at its overall sales figure for its first rough sight in 2016: $540 million. Golan writes that De Beers has several sales channels. The largest is to their sightholders - contracted clients who each buy at least $15 million worth of rough diamonds annually - and the accredited buyers, which have second dibs on the offered goods. The current estimate in the market is that De Beers sold a little over $490 million worth of rough diamonds via the sightholder system.
Rapaport News reports that diamond mining giant ALROSA maintained rough prices at its January contract sale, stressing it sees no reason for prices to fall in current market conditions.
Anglo American & De Beers have announced the value of rough diamond sales (Global Sightholder Sales and Auction Sales) for De Beers’ first sales cycle of 2016.
Last week, the Times of India reported that small and medium diamantaires would for the first time be able to participate in De Beers' tender auction of rough diamonds and could now buy diamonds directly at auction from Diamdel (which is now called De Beers Auction Sales) at the India Diamond Trading Centre (IDTC).
In the traditional sightholder reception during the first De Beers sight of the year, De Beers Group Chief Executive Philippe Mellier said there were some encouraging signs in the diamond industry at the start of 2016, but cautioned that the recovery in the diamond sector remained delicate and that there was likely to be some volatility in 2016.
Bloomberg Business, citing three unnamed insiders, reports that De Beers cut rough diamond prices as much as 7% at its first sight of the year as the biggest producer works to counter slowing demand. De Beers plans to offer about $450 million of diamonds for sale, one said. A company spokesman declined to comment. Slower diamond jewelry sales in China and a credit crunch in the industry has sapped demand. That’s left cutters and traders with excess stockpiles, and forced the biggest producers to cut output and prices, writes Bloomberg.
Diamond miners are expected to have to offer more price cuts in 2016 to help the industry clear a backlog of stock and revive sales, according to sector experts, Financial Times reports. Lower prices and possible supply cuts will put further strain on the balance sheets of some miners including Anglo American, which owns De Beers, the largest supplier of rough diamonds by value.
Andrew England writes for the Financial Times that while the diamond industry is the backbone of the Botswanan economy - which has transformed from one of Africa's most impoverished to one of its richest, particularly since it convinced De Beers in 2013 to relocate its Global Sightholder Sales from London to Gabarone - it is in dire need of diversification. As Reuters wrote at the time, "The 2011 decision to move ...
The miner has set the dates for its sales next year, with the first one taking place from January 18 to 22 which will give an indication of sightholder demand following the crucial holiday sales season and ahead of the Chinese New Year.