De Beers Group’s rough production fell by 14 per cent to 6.7 million carats in the fourth quarter ending December 31, 2020, but demand could be on the upswing based on “encouraging” trends, said parent firm Anglo American plc. 

The company attributed the lower output to continued reductions and weaker demand at the height of the Covid-19 pandemic as well as operational challenges at Orapa that led to lower-than-expected production.

Full-year rough diamond output shrank by 18 per cent to 25.1 million carats.

Mark Cutifani, chief executive of Anglo American, commented, “As we begin 2021, we are continuing to see positive demand for rough diamonds, supported by consumer demand for diamond jewellery in the holiday selling season. While it is still too early to signal a strong and sustained recovery, the resilience in demand in spite of ongoing Covid-19 impacts is very encouraging.”

This promising level of consumer demand for diamond jewellery was especially evident during the holiday season in the US, with China likewise performing well, according to Anglo American. 

Rough diamond sales reached 6.9 million carats (6.4 million carats on a consolidated basis) from two Sights in Q4 2020 compared with 6.6 million carats (6.5 million carats on a consolidated basis) from three Sights in the previous quarter. De Beers sold 7 million carats (6.6 million carats on a consolidated basis) from two Sights in Q4 2019.

The consolidated average realised price was down by 3 per cent to US$133 per carat as an increased proportion of higher-value rough diamonds sold in 2020 partly offset a 10 per cent cut in the average rough price index.

Production guidance was earlier revised to 32 to 34 million carats from 33 to 35 million carats.