De Beers sees rising sales in recovering market
In Q1, De Beers’ rough production and sales increased, signifying a positive change for the manufacturing sector.
This quarter, sales volume jumped 74 per cent to 14.1 million carats. The company notes that this reflects improved rough demand. The number of sights also made a difference, as there were three this quarter compared with two during the same period last year.
Demand was especially increased for the lower-value products that had built up in the company’s inventory at the end of last year. Sightholders returned to buying these smaller diamonds in January. De Beers notes that the previous lack of sales was due to India’s demonetization policy on liquidity in the manufacturing sector.
What’s more, De Beers reported strong sales in January and slightly lower albeit steady sales in February and March. According to Rapaport, its sales value also increased by two per cent year on year to $1.86 billion.
Production volume also increased eight per cent to 7.4 million carats, with improved trading conditions and the addition of diamonds from the new Gahcho Kué mine in Canada.
Additionally, the miner maintained its full-year production guidance of 31 million to 33 million carats.