De Beers has raked in $355 million from its second rough diamond sale compared with $496 million, a year earlier and $551 million, the previous month. Group chief executive Bruce Cleaver said they recognised the impact of COVID-19 Coronavirus on customers focused on supplying the Chinese market.
He said they also put in place additional targeted flexibility to enable customers to defer allocations of the relevant rough diamonds.
Media reports had recently suggested that De Beers was considering giving a helping hand to its struggling buyers following weak diamond sales that hit the industry last year.
This was expected to help De Beers ensure that buyers get the rough best suited to their needs and business type.
The diamond industry experienced an oversupply of polished diamonds last year, which led to sharp price drops than for rough stones.
De Beers was forced to lower prices across the board by about 5%.
The Anglo American unit, is reportedly planning to significantly cut the number of its sightholders as well as reconsidering the way that diamonds are allocated among the group.
De Beers’ current six-year contract with buyers expires at the end of this year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
