De Beers Sales Rise After Diwali Break

RAPAPORT... De Beers sold $540 million of rough diamonds in its Decembercycle, buoyed by the return of Indian manufacturers from their seasonal holidayshutdown, the company said Tuesday. Revenue from the 10th cycle, including last week's sight inBotswana, jumped 22% from $442 million during the previous cycle. Proceedsclimbed 19% versus a year ago. Sales "continued to be in line with expectations ahead ofthe all-important retail selling season, as cutting and polishing factories inIndia restarted their operations following the Diwali holiday," said De BeersCEO Bruce Cleaver. Indian factories typically close for three weeks over Diwali, which this year occurred on November 7. The market usually picks up after the festival as manufacturersreopen and buy rough so they can ramp up operations. They also use December to prepare for ananticipated increase in polished demand in the first quarter, when dealers andretailers look to replenish stocks they deplete during the US holiday season. De Beers' rough-diamond sales rose 2% to $5.39 billion thisyear, according to Rapaport estimates. That includes 10 sights across the year,as well as auction proceeds.Image: De Beers' sales office in Botswana. (De Beers)