Anglo American PLC (LON:AAL) said about US$550mln of rough diamonds were provisionally sold in the De Beers' second sales cycle of 2021, representing an increase of more than 50% from same cycle a year earlier.
"We saw the continuation of good rough diamond demand during our second sales cycle of 2021 on the back of positive consumer demand for diamond jewellery," said Bruce Cleaver, chief executive of De Beers Group. "Midstream buyers continued to express healthy demand following better than expected retail sales of diamond jewellery over Christmas, Chinese New Year and Valentine's Day, with the industry now set to enter what is traditionally a period of lower seasonal demand."
"While the year has started positively, we recognise ongoing near-term uncertainty in the pace and shape of the recovery," he added.
The Sight event was extended beyond its normal week-long duration as the group took a more flexible approach to rough diamond sales during the second sales cycle due to COVID-related restrictions on the movement of people and products around the globe.
"As a result, the provisional rough diamond sales figure quoted for Cycle 2 represents the expected sales value for the period 22 February to 08 March and remains subject to adjustment based on final completed sales," De Beers said.
De Beers, the world's largest diamond supplier by value, sells about 90% of its diamonds through its global sightholder sales (known as ‘Sights’) where customers are able to inspect the rough diamonds before deciding what to buy.
Actual sales in the second cycle of 2020 were US$362mln, hampered by COVID lockdowns.
The potential recovery in diamond demand came as good news for Petra Diamonds Ltd (LON:PDL) which today said it had completed a previously announced restructuring.
"With Petra Diamond's restructuring now complete we believe it is very well positioned to benefit from what has so far been a rapid recovery to the diamond market," said Peel Hunt analyst Peter Mallin-Jones.