De Beers Sales Plummet Amidst Global Economic Challenges
Falling Demand Forces Diamond Giant to Reschedule Sales Cycle
De Beers, a leading player in the diamond industry, has announced a rescheduling of its sales cycles due to a significant decline in demand. As the global economy grapples with challenges, the market for diamonds has softened, leading to a drop in sales volume and revenue for the company.
Significant Drop in Sales Volume
In the fifth rough-sales cycle of the year, De Beers witnessed a sharp decrease in sales volume. The number of carats sold fell by 22% to 119 million carats, compared to the previous cycle. Despite a slight increase in the average price per carat, overall revenue dropped significantly.
Revenue Decline Despite Production Target
Despite the production target remaining unchanged, De Beers experienced a notable decline in revenue. In 2023, revenues dropped to US$43 billion, a significant reduction compared to previous years.
Ongoing Challenges in Diamond Market
The diamond market continues to face challenges due to global economic conditions. The value of De Beers rough diamond sales for the eighth and ninth sales cycles of this year also declined. The company attributed this to the combination of macroeconomic factors and a slowdown in demand from key markets.
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