De Beers rough diamond sales increase 32% in January

SURAT: In what is seen as a big rebound in 2017,

De Beers rough-diamond sales

jumped 32 per cent year on year to $720 million during its first sales cycle as manufacturers restocked following the holiday season.

According to US-based Rapaport group, January is a seasonally busy month for the rough sector as traders and manufacturers return to the market after working down their inventories over the festive selling period. Even so, the miner recorded its largest January sight since 2014, according to

Rapaport records

.

“We saw good demand across the majority of our assortment during the first sales cycle of the year, as the industry entered the period when

rough diamond

demand is traditionally strongest,” said Bruce Cleaver,

De Beers

chief executive officer.

Demand for smaller goods, while still weaker than larger stones, started to pick up again after being hurt by the Indian government’s decision to invalidate Rs.500 and Rs. 1,000 currency notes in November. This move, known as demonetization, sapped liquidity mainly from the smaller manufacturers. Prices of smaller goods were relatively steady, in contrast to an increase among larger goods, sightholders reported.

The industry is slowly getting used to the new environment where smaller companies who deal in cash have less buying power, sightholders said. Indian cutting factories have started to return to activity after the liquidity crisis stopped many from opening up after Diwali, with demand for the smaller goods picking up gradually.