De Beers’ rough diamond demand was robust in the first half of 2014, reflecting a positive outlook for polished diamonds in its key markets of the United States, China, and India.
In its 2014 interim results, De Beers’ parent company, Anglo American, reports stronger year-on-year consumer demand between Thanksgiving and Chinese New Year—the key selling season—which resulted in higher levels of retailer restocking during the first half of 2014 than in the same period last year.
The company says these factors contributed to strong sales performance, with total sales up by 15 per cent to $3.8 billion, while rough diamond sales also increased 15 per cent to $3.5 billion.
In other report highlights, De Beers announced changes last month to its rough diamond sales contracts. The new contract period, which starts next March and runs for three years, with an option for De Beers to extend, requires De Beers’ rough diamond customers to comply with more rigorous financial and governance requirements to be eligible for supply.
Regarding mining and manufacturing, production continues to improve at both Canada’s Victor and Snap Lake mines, with the latter facing challenges on the water-management front.
The Forevermark and De Beers Jewellers brands are also experiencing increases. Forevermark is now available in more than 1400 authorized jewellery stores in 29 countries, up 30 per cent from 2013.
Sales of the De Beers Jewellers brand continues to be boosted by its Chinese clientele, both in Asia and in other luxury shopping destinations around the world.
