After major miners De Beers and Alrosa announced price cuts, Bloomberg reports that the combined sales of their recent long-term client sales amounted to US$500 million, in stark contrast with the near-zero sales of the past six months, as the pandemic broke out and both companies decided to maintain pricing but maximize flexibility to their clients to defer contract purchases.
For the sixth sight of the year, De Beers will continue to offer their clients the possibility to view goods in Antwerp and also Dubai, starting on Monday. Alrosa announced earlier this week it will drop mandatory buyout minimum requirements for the July sale, also starting on Monday, and as of August, the volumes will be reduced to 50% leaving clients the option to purchase additional goods via auctions and tenders.
De Beers is currently holding its 5th cycle sight viewings in Antwerp, a new initiative allowing sightholders who wish to do so, to view the goods outside of the usual sights held in Gaborone, Botswana. The goods will continue to be sold from Botswana, but the country has closed its borders for foreigners, forcing De Beers to literally think outside of the box. As the city is home to a large number of De Beers Sightholders, Antwerp is the first location to have such viewings.
Alrosa reports its first E-sight, offering long-term clients the possibility to purchase on a stone-by-stone basis was a success, “demonstrating market demand for rough diamonds and a willingness to purchase via online channels.”, says Alrosa deputy CEO Evgeny Agureev.
In a second tender, currently going on, the miner is tendering 700 rough stones from 5 to 10ct batches, open for purchase to long-term clients, as well as Alrosa’s spot and auction customers.
According to Reuters, De Beers, together with the government of Botswana is looking into (temporarily) shifting its sight viewings from Gaborone, Botswana, to major trading hubs, closer to their clients, for example in Antwerp. Reuters cites De Beers Executive Vice President, Diamond Trading, Paul Rowley; “If we can move our product closer to them it would give us the flexibility to restart sales as soon as the markets reopen”.
De Beers has cancelled its third rough diamond sale (sight) of 2020 in response to the logistical difficulties arising from the COVID-19 pandemic. "Due to the public health restrictions on the movement of people and product in Botswana, South Africa and India, which prohibit customers from traveling and prevent the shipment of goods to customers’ international operations, De Beers Group will not hold its third Sight of 2020," the miner wrote in a press release.
De Beers third sight (rough diamond sale) of 2020, scheduled for March 30 to April 3 in Gaborone, will go ahead as planned despite Botswana’s announcement of a travel ban on foreigners arriving from “high risk” countries that include Belgium, China and India. Many of the companies that participate in De Beers’ sales are headquartered in these countries.
The optimism at the beginning of the year regarding improved demand for rough diamonds has shifted to uncertainty following the outbreak of the COVID-19 coronavirus; as expected, De Beers' sales at the second sight of the year took a nosedive, ending at a provisional $355 million. That result is 36% off the pace of their first sale of the year ($551 million) and 28% lower than the $496 earned at the second sight of 2019.
At meetings in Botswana coinciding with its second rough diamond 'sight' of 2020, De Beers detailed to clients its plans to scrap the one-size-fits-all supply model and create three different types of contract: manufacturer contracts, dealer contracts and integrated retailer contracts, a company representative explained to us. Each type of contract is said to be designed around the broad needs of the three types of business model to which they apply. The move is designed to help the diamond miner ensure that each buyer gets the stones most suited to its needs and business type.
As anticipated, De Beers first rough diamond sight of 2020 bounced back to historical levels, earning $545 million (provisional result) at their January sale. The January sale is typically one of the largest of the year as the industry replenishes their stocks following the holiday season and the 2020 iteration did not disappoint.
De Beers might "significantly reduce" its number of sightholders and could be introducing changes to the way it allocates and sells its rough diamonds, according to Thomas Biesheuvel of Bloomberg. The miner's current six-year contract with buyers expires at the end of 2020.
De Beers brought a tumultuous 2019 to a close on a positive note, as provisional rough diamond sales of $425 million at their Cycle 10 sight represents their highest earnings in seven months since the April sight and the fourth straight sight with increasing sales. While it does not quite match the $544 million earned at the final sight of 2018, it does demonstrate that demand for rough is stabilizing - though their buyers did not really have much say in the matter, as the miner had withdrawn the additional flexibility provided to sightholders since July.
The price cut De Beers introduced for the November sight (Cycle 9) appears to have generated some movement in the rough diamond market, as the miner sold (provisionally) $390 million at its latest sale. This marks the third straight sight with increasing sales and a 31% jump over the $297 million in sales at the previous sight, though it is still 12% lower than in Cycle 9 a year ago.
According to Bloomberg News' Thomas Biesheuvel, De Beers at its November sight took the nearly unprecendented step of lowering the price of rough diamonds by 5%, according to sources that spoke anonymously as the matter is private. Our sources in Antwerp were able to confirm a softening of prices in most categories but did not place a percentage figure on it.
De Beers' rough diamond sales during Cycle 8 in Sept.-Oct. provisionally totaled $295 million, a 39% drop from the $482 million sold in the same period last year. The decline comes as no surprise as it had already been reported that the miner once again offered sightholders several options to increase the flexibility of buyers struggling with an industry-wide slump caused mainly by an oversupply polished stones in the diamond 'pipeline'.
According to the latest reporting by Thomas Biesheuvel at Bloomberg, at Sight 8 (23 Sept. - 27 Sept.) De Beers has once again offered several options to increase the flexibility of buyers struggling with an industry-wide slump caused mainly by an oversupply polished stones in the diamond 'pipeline'.
De Beers rough diamond sales continued to be very slow in August, as the company announced provisional revenues at the seventh sight of 2019 totalling $280 million. This is significantly lower (-44%) than the $503 million sold at Sight 7 2018, and represents a modest uptick from the $250 million sold at Sight 6, which was the lowest amount earned from a sale since December 2015. As with the previous sight, the miner gave its clients the opportunity to leave up to 50% of available goods on the table to lower the pressure on buyers without lowering their prices.
De Beers today announced that its sales of rough diamonds at its sixth 'sight' of the year in July earned a total of $250 million, a 53% decline from the $533 million sold in July 2018. It is the smallest amount earned from a sale since December 2015, as the miner gave its clients the opportunity to buy fewer goods without repercussion - an uncommon though not unprecedented move. De Beers CEO Bruce Cleaver says this flexibility is part of their effort to work with its clients to help them ride out the storm currently raging in the rough diamond market.
De Beers' rough diamond sales at Cycle 5 in June were (provisionally) $390 million, making sight number five of 2019 the lowest-earning sight of the year to date, the smallest since the October 2017 sight ($370 million, Cycle 8) and the lowest for a June sale since the miner started releasing monthly sales data in 2016. June is not typically a slow month for rough diamond sales. Cycle 5 sales from 2016-2018 averaged $555 million, or 30% more than in 2019.
De Beers' rough diamond sales in May were (provisionally) $415 million, making sight number four of 2019 the lowest-earning sight of the year to date, the smallest since the October 2017 sight ($370 million, Cycle 8) and the lowest for a May sale since the miner first released sales data in 2016. The $415 million in reported sales represents a 25% decline from sales in Cycle 4 2018 ($554 million). The company cited macroeconomic challenges and a seasonal decline in demand for rough diamonds to manufacture as weighing down sales at the sight.
De Beers' third sight of 2018 (Cycle 3) was easily its largest of the year thus far, provisionally realizing $575 million in rough diamond sales, a figure the miner has not reached since their Cycle 5 sale in June 2018. "As we move into the second quarter of the year, we saw a continuation of stable demand for our rough diamonds during the third cycle of 2019," commented Bruce Cleaver, CEO, De Beers Group. De Beers' sales in Cycle 3 was 16% higher than the $496 million earned in Cycle 2, and 10% more than the $524 million in Cycle 3 2018.
De Beers sold $490 million worth of rough diamonds in Cycle 2 2019, holding steady at just $10 million less than their January sale but at a lower level than last year. The miner's sales fell 13% compared to the $563 million sold at their second sight last year, and combined sales for the first two sights of the year have fallen by 20% compared to 2018.
De Beers' first sight of the year provided no indication that the sluggishness of the market for lower value rough is ready to subside. The January sight is typically one of the largest of the year, as manufacturers restock after the Christmas season in preparation for the holidays ahead, including Chinese New Year and Valentine's Day. De Beers rough sales in Cycle 1, however, were much lower than the two previous starts to the year.
Several sources, including Bloomberg and Rapaport, have reported that De Beers has slashed its prices on lower-quality diamonds at its latest sight this week, with the discounts ranging from high-single digits to as much as 10%. Difficult trading conditions have been widely reported in the rough diamond market in recent months, although the market for higher-quality and larger goods has remained strong with firm pricing in all categories.
Diamond mining giant De Beers reports provisional sales of $505 million during the seventh cycle (September 3 - 7) ahead of the Hong Kong Jewellery & Gem Fair, which gets underway this week. Rough sales were flat year-over-year ($507 million in 2017) and declined as anticipated from the $533 million sold in Cycle 6.
De Beers Group today announced it has provisionally sold $550 million of rough diamonds for the fourth sales cycle of 2018 (Global Sightholder Sales and Auction Sales), against a backdrop of what has been called "record demand". De Beers published last week a report stating that diamond jewelry demand rose to a record $82bn globally in 2017 after several years of stagnation.
De Beers rough diamond sales (Global Sightholder Sales and Auction Sales) for the third sales cycle of 2018 (April 9 -13) slowed to a provisional $520 million, an 11% drop year-over-year and an 8% decline from the $563 million in actual sales ($555M provisional) sold in Cycle 2. The drop in sales was not unanticipated after heavy buying early in the year, and unnamed insiders commented last week that De Beers had raised prices between 1 and 2 percent, a similar percentage increase as in its previous sale at the end of February.
Russian diamond mining giant ALROSA sold $532.8 million worth of rough diamonds in February, as market damand for rough stones remains robust, driven by manufacturer restocking and strong jewelry sales in China leading up to the Chinese New Year. Rough sales for the month represented a 37% increase over the same month a year ago, and follows a strong initial sale of the year where they sold $499 million. The $1.03 billion in sales for the first two months of 2018 marks a 34% rise over the $748 million moved in 2017.
De Beers' rough diamond sales (Global Sightholder Sales and Auction Sales) for the second sales cycle of 2018 stayed strong at $565 million, equivalent to sight number two a year ago ($553 million). While it fell well short of the first cycle of 2018, this is to be expected as Cycle 1 sales were driven by companies restocking following the holiday season. Actual sales for Cycle 1 of 2018 were also adjusted upward to $672 million from the provisional sales figure of $655 million.
De Beers' rough diamond sales (Global Sightholder Sales and Auction Sales) for the first sales cycle of 2018 spiked to $665 million, making it the highest sales figure since the first cycle of 2017 as companies restocked following the holiday season. Actual sales for Cycle 10 of 2017 were adjusted upward to $455 million from the provisional sales figure of $450 million.
De Beers reports the value of its provisional sales for Cycle 10 2017 (representing sales as at 11 December 2017) at $450 million, a modest drop from actual sales of $466 million in Cycle 9 and a nearly 7 percent increase from the $422 million in sales for the same cycle in 2016. It should be noted that De Beer’s provisional sales value for Cycle 9 was $455 million, later adjusted upward to $466M. For the year to date, De Beers has sold $5.306 billion in rough diamonds (noting the provisional nature of Cycle 10), compared to $5.587 billion in sales last year, a 5 percent decline.
Anglo American’s De Beers’ rough diamond sales for the 9th cycle saw a 21% increase from the previous cycle, which CEO Bruce Cleaver says is due to “an uptick in demand from our customers as retail orders increase ahead of the Christmas season.”
De Beers Group today announced it earned $370 million in rough diamond sales (Global Sightholder Sales and Auction Sales) for the eighth sales cycle of 2017, making it the smallest sight in terms of value since the company started publishing its sales results in 2016. The value of diamond sales in the eighth cycle is 27% lower than the $507 sold in Cycle 7, and 25% lower than the same period a year ago.
According to yesterday’s media release, De Beers’ rough diamond 7th sales cycle fell by 12% to $505 million, from July’s $576 million. This represents a 21% decrease over rough diamond sales valued at $539 million at Sight 7 a year ago. For the first six cycles of the year to date, De Beers' rough diamond sales are valued at $3.50 billion, a 1.5% decline compared to the $3.56 billion sold during the first six cycles of 2016.
De Beers rough diamond sales at Sight 6 (Global Sightholder Sales and Auction Sales, July 24-28) provisionally totalled $572 million, according to today's media release. This represents an 8% increase over rough diamond sales valued at $528 million at Sight 6 2016, and a nearly 6% increase over the latest sales Cycle 5 (June 12-16, 2017). For the first six cycles of the year to date, De Beers' rough diamond sales are valued at $3.50 billion, a 1.5% decline compared to the $3.56 billion sold during the first six cycles of 2016.
De Beers sold $530 million worth of rough diamonds at the fifth sales cycle of 2017 (Global Sightholder Sales and Auction Sales), marking a 1.5% increase over Cycle 4 ($522 million) and a 6% drop from Cycle 5 in 2016.
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.