De Beers diamond sales drop dramatically in second cycle of 2020

JOHANNESBURG – DE Beers, the world’s third-largest producer of rough diamonds, yesterday reported a 28percent year-on-year knock in sales during its second sales cycle of 2020 as the coronavirus hurt its Chinese market.

De Beers, a subsidiary of global mining giant Anglo American plc, reported$355million (R5.48billion) in rough diamond sales in the second sales cycle, down from $496m a year earlier, and $551m in the first sales cycle in 2020.

Chief executive Bruce Cleaver said the group felt the impact of the coronavirus just as the company was on a recovery trajectory following a slump in demand last year.

“Following an improvement in demand for rough diamonds during the first sales cycle of 2020, we recognised the impact of Covid-19 coronavirus on customers focused on supplying the Chinese market and put in place additional targeted flexibility to enable customers to defer allocations of the relevant rough diamonds,” said Cleaver.

The coronavirus has sent shockwaves across the market and has led to speculation that the global economy could be pushed into a recession.