Image credit: De Beers
The diamond giant commenced its eighth Sight of 2020 on Monday and it reduced prices for smaller rough diamonds by more than 10%, according to unnamed people quoted by Bloomberg.
De Beers was said to have cut prices for bigger and more expensive stones last month, which was its first reduction since the coronavirus hit the world.
Bloomberg opined that the cuts reflect that the diamond company believes demand had returned, although at a lower price point, even for smaller stones where the market has struggled.
De Beers chief executive Bruce Cleaver also said recently that diamond markets showed some continued improvement throughout August and into September as Covid-19 restrictions continued to ease in various locations, and manufacturers focused on meeting retail demand for polished diamonds.
He said overall industry sentiment had become more positive as jewellers in the key US and Chinese consumer markets gained confidence ahead of the important year-end holiday season, supported by strong bridal diamond jewellery demand across markets.
De Beers’ sixth and seventh sales cycles of 2020 generated $116 million and $320 million, respectively.
This year’s cycle 7 firmed when compared to $287 million realised at the same time, a year earlier.
The recovery in rough diamond demand in the seventh sales cycle of the year came after several months of minimal manufacturing activity and disrupted demand patterns in all major markets.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
