De Beers says rough diamond demand ‘is improving’

Demand for rough diamonds continues to improve for De Beers as it announces an increase in sales for its second sales cycle of 2016.

According to its preliminary report for the second sales cycle of the year, the company sold $610m (£435m) worth of rough diamonds, taking into account global sightholder sales and auction sales.

It follows the news that in its first sales cycle of the year it sold $540m (£380m) worth of rough diamonds – more than doubling the value achieved in the final sales cycle of 2015.

The report said rough diamond demand continues to show signs of improvement as excess inventory has continued to work through the system in recent months.

Philippe Mellier, chief executive, said: “Retailer restocking after the end of the year holiday season is supporting demand for polished diamonds and, in turn, we are seeing improved demand from the midstream for rough diamonds.

“However, we remain mindful of the need for a cautious approach as the recovery continues.”