[miningmx.com] – DIAMOND prices would stage a turnaround, albeit modest, in 2013 assisted by improved sales in China and India, said Business Report citing De Beers, the company in which Anglo American has an 85% stake.
“Despite macroeconomic concerns, demand for diamond jewellery continues to grow in the key markets of the US, China and Japan,’ De Beers CEO, Philippe Mellier, said in presenting the firm’s year-end figures on February 15.
Total sales at De Beers fell 16% to $6.1bn (R54bn) last year. Core earnings fell 39% to $1.08bn.Production dropped 11% to 27.9 million carats and De Beers said it planned no increase this year.
“If there is an upside, if we can see that the demand is slightly higher than what we are expecting, we could eventually ramp up into a bit more production,’ Mellier said.
Trading conditions in other developed markets were likely to be challenging, with stocks of unprocessed diamonds still high, said Business Report citing De Beers.
The holiday season for diamonds stretches from India’s Diwali in November to last week’s Chinese New Year, but questions remain about how long the good cheer will last, it said.
“The holiday sales have shown a modest improvement in pricing, but this is likely to diminish somewhat but remain stable in our view,’ Numis Securities analyst Cailey Barker said in a note to clients.
