Gaborone, Botswana—The De Beers Group concluded its 2023 operations with a notable decline in rough diamond sales, amounting to $3.63 billion, marking a stark 37 percent decrease compared to its 2022 performance.
The renowned diamond company faced formidable challenges, grappling with the weight of staggering comparisons to its robust 2022 sales figures, which nearly touched $6 billion, marking its most robust showing in a span of four years. The subdued demand, attributed to inflationary pressures and a sluggish Chinese market, contributed to the softer-than-expected sales trajectory.
Operating on a schedule of 10 “sales cycles” annually, De Beers typically includes sales of rough diamonds to both sightholders and online auction customers in its cumulative sales figures.
The downturn in sales commenced steadily, particularly evident in the fourth sales cycle (May 1-16), and intensified further during the eighth cycle (Sept. 18-Oct. 3), compelling De Beers to enact substantial sales pullbacks.
Responding to market conditions, the company made pivotal decisions, canceling the remaining online auctions for the year. Additionally, it declared that sightholders would be granted complete flexibility concerning purchases in sights 9 and 10.
In a strategic move aimed at revitalizing the market, the company unveiled plans in mid-September for a $20 million marketing campaign promoting natural diamonds, leveraging its iconic “A Diamond Is Forever” tagline.
During the eighth sales cycle, De Beers reported $200 million in rough diamond sales (mid-September through early October), a stark contrast to the $508 million recorded during the same period in the previous year. Subsequently, sales plunged to $86 million in the ninth cycle, compared to $454 million in the preceding year.
Concluding the year with its tenth and final sales cycle (early November through mid-December), rough diamond sales totaled $130 million. This marked a 69 percent decline compared to $417 million in the corresponding period the prior year, yet a noteworthy 51 percent surge in comparison to sales during the ninth cycle.
Addressing the current market dynamics, De Beers CEO Al Cook conveyed optimism, highlighting indications of a restoration in the supply-demand equilibrium. Cook pointed out that polished diamond prices are showing signs of stabilization as wholesalers make headway in reducing their inventories.
However, Cook remained cautious, expressing expectations for the recovery of rough diamond trading conditions to unfold gradually in the coming period.
