De Beers sells rough diamonds of worth USD545 million in the second sale cycle

De Beers, one of the world's largest diamond mining company, sold USD545 million worth of rough diamonds in the second sale cycle in February following steady demand.

According to US-based Rapaport group, sight holders noted an improvement in market conditions for the first two months of the year, particularly after Indian demand slumped in November due to the government’s demonetization policy.

Bruce Cleaver, CEO, De Beers Group, said, "We continued to see good demand across our product range in the second sales cycle, which was in line with expectations at this time of year. Sentiment remains positive heading into the Hong Kong International Jewellery Show this week – an important barometer of trade confidence."

Sources said that the demand for lower-quality, smaller rough, which was affected after demonitisation in November, rebounded in February. These goods are now selling at near- double-digit premiums on the secondary market after De Beers sold fewer goods in November and December and reduced prices in January.

De Beers prices firmed by about 1 percent on average, sight holders estimated, while premiums decreased for most categories on the dealer market.

According to Rapaport estimates, De Beers sales in the first two months of the year increased 10 percent to USD1.27 billion, after the company restated the size of its January sale to USD729 million. Sales in February were 12 percent lower than a year ago.