Consumer interest in diamonds has again reached a higher level during the past quarter. After months of modest sales, the approaching holidays have revitalized the diamond market. This has been announced by mining giant Anglo American, the parent company of diamond producer De Beers.
De Beers sold 6.6 million carats of diamonds between the beginning of July and the end of September. This is a sharp increase compared to the second quarter, when only 300,000 carats were sold. Compared to the third quarter, however, there is still a decrease of 11 percent.
“The rebound in sales compared to the second quarter reflects the resurgence of demand from diamond merchants, who want to fill stock shortages,” Anglo American emphasizes. In addition, the market has benefited from the relaxation of restrictive measures, which has enabled diamond processing to return to a higher level of production.
“Vendors, too, were able to count on a larger audience once again as a result of the relaxation. As the festive period approached, a systematic improvement in the demand for rough diamonds could be noticed. However, there is still uncertainty about the sustainability of the recovery“.
Analyst Rapaport calculated that De Beers sold 917 million dollars worth of diamonds during the third quarter. That meant an increase of 10 percent compared to the same period last year. “In July, a slight improvement could already be noted, but this trend intensified as the quarter progressed,” says Rapaport.
During the second quarter, when the global industry came to a virtual standstill under the impact of the corona pandemic, De Beers still had to report a 96 percent drop in sales.
De Beers produced 7.2 million carats of diamonds during the third quarter. This was a decrease of 4 percent compared to the same period last year. “This was mainly due to a planned reduction in mining activity in order to absorb the declining demand for diamonds due to the corona crisis,” says Anglo American. However, production was significantly higher than in the second quarter, when only a volume of 3.5 million carats was excavated.
De Beers is maintaining full year production forecasts. The company previously reported a level between 25 million carats and 27 million carats. However, this outlook will depend on further market developments during the rest of the year.