Anglo American’s De Beers Group Chief Executive Officer, Bruce Cleaver says the diamond industry continues to adopt a watchful approach in light of the risks to consumer sentiment presented by macroeconomic challenges.
There have been rising concerns that the rate of global growth is slowing with a recession being forecasted and this will affect consumer spending, which could impact the diamond industry.
“While consumer demand for natural diamonds continued to be robust in the first half, a deterioration of global macro-economic conditions and reduced consumer spending could impact demand for diamond jewellery,” De Beers said in the Anglo American’s second-quarter production report last week
Meanwhile, in a sixth sales cycle of 2022 update, De Beers said owing to the restrictions on the movement of people and products in various jurisdictions around the globe, it continued to implement a more flexible approach to rough diamond sales during the sixth sales cycle of 2022, with the sight event extended beyond its normal week-long duration.
As a result, the provisional rough diamond sales figure quoted for Cycle 6 represents the expected sales value for the period 11 July to 26 July and remains subject to adjustment based on final completed sales.
Cleaver further highlighted that following a period of consistently robust demand in the first half, we continued to see steady demand for De Beers’ rough diamonds in the sixth sales cycle of the year.
According to Anglo American’s second-quarter production report last week, the consolidated average realised price of for rough diamonds in the first half of the year increased by 58% to $213 per carat driven by the larger proportion of higher value rough diamonds sold, as well as higher prices.
The rough price index grew by 28% compared to the first half of 2021, reflecting positive consumer demand for diamond jewellery as well as tightness in inventories across the diamond value chain.
Looking forward, the combination of ongoing sanctions against Russia, decisions from a number of US-based jewellery businesses to apply their own restrictions on purchases of Russian diamonds, and continued development of provenance initiatives has the potential to underpin continued robust demand for De Beers’ rough diamonds.
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