De Beers Sales Slip to $440M

RAPAPORT... De Beers recorded its lowest-value sales cycle this year asweak Indian demand prompted it to drop prices of cheaper goods. Proceeds fell to $440 million in November as the miner reducedprices by high-single-digit percentages for rough diamonds costing $100 per carator less, sightholders said last week. The Indian manufacturing sector has struggledwith thinning profit margins due to relatively high rough prices and the weakrupee, while tighter bank lending has further contributed to a decline indemand. November is also seasonally slow as factories close for the Diwalifestival. Proceeds from the ninth sales cycle fell 6% compared withthe equivalent period a year ago, and were down 9% versus the $482 million itgarnered in October, De Beers reported Tuesday. "As the industry's focus turns towards the key end-of-yearretail selling season, rough-diamond sales continued to be in line withexpectation during the ninth cycle of the year," said De Beers CEO BruceCleaver. "While demand for smaller, lower-quality rough diamonds continues tosee some challenges, the latest cycle saw some signs of improvement in thisarea as factories in India begin to reopen after Diwali." Rough-diamond sales came to $4.85 billion for the first ninecycles of the year, in line with a year ago, according to Rapaport calculations. The company offers its rough goodsat 10 sales cycles across the year, mainly at sights in Gaborone, Botswana. Itssales figures also include auction proceeds.Image: A De Beers sightholder examines a parcel of rough diamonds. (Kieran Doherty/De Beers)