19th May 2021 09:10
(Alliance News) - Anglo American PLC on Wednesday said its diamond business De Beers posted lower sales for its fourth sales cycle of 2021, as the spread of Covid-19 in India, where most diamonds are cut and polished led to lower demand for rough stones in an already slow time of year.
For the provisional fourth sales cycle - which reflects the period from May 3 to May 18 - De Beers posted rough diamond sales of USD380 million, down 16% from USD450 million in the third sales cycle.
However the figure was significantly higher compared to the fourth and fifth cycle of 2020, which achieved a mere USD56 million in total.
"We continue to see robust demand for diamond jewellery in the key US and China consumer markets. However, the scale of the second wave of Covid-19 in India, where the majority of the world's diamonds are cut and polished, has led to reduced midstream capacity and subsequently lower rough diamond demand, during what is already a seasonally slower time of year for midstream purchases," said De Beers Chief Executive Officer Bruce Cleaver.
"Our thoughts are with all those in India as the country navigates the current challenges presented by the pandemic - reminding us that the road ahead remains uncertain and that we must continue to adopt a watchful approach," Cleaver added.
Shares in Anglo American were down 2.4% at 3,230.50 pence on Wednesday in London, while its Johannesburg shares were 2.5% lower at ZAR642.12.
By Dayo Laniyan; [email protected]
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