Anglo American says De Beers' diamond sales exceed pre-pandemic levels (updated)
03/02/2021 09:36
(Adds comments from CEO, analyst note, details)
Feb 3 (Reuters) - Miner Anglo American AAL.L said on
Wednesday its diamond unit recorded higher sales in the first
cycle of 2021, boosted by robust demand ahead of the Chinese New
Year and Valentine's Day.
The upbeat report comes at a time when the diamond industry
has been struggling with falling sales and prices as the
COVID-19 pandemic hammered demand and the ensuing lockdowns
prevented buyers from travelling to auction sites.
"While risks to recovery as a result of ongoing restrictions
on the movement of both people and goods persist, we have been
encouraged by demand conditions," said Bruce Cleaver, chief
executive officer of De Beers Group.
Anglo American said demand for rough diamonds in the first
cycle was also lifted by midstream customers restocking to fill
in low levels of inventories in the United States.
The company said the value of rough diamond sales for De
Beers' first sales cycle of 2021 was $650 million, compared with
$551 million last year, well before the COVID-19 outbreak hit an
already weakened diamond market. urn:newsml:reuters.com:*:nRSC7675Na
Sales of the first cycle were up 44% from the last round of
sales of 2020. Barclays analysts in a note said the sales are
10% above the 20-year average for first sight sales and the
highest value single sight since January 2018.
(Reporting by Shanima A in Bengaluru; Editing by Amy Caren
Daniel)
((shanima.a@thomsonreuters.com; Direct: +91 7760347399;))