Last year, De Beers' profit increased as strong consumer demand boosted rough-diamond sales and pushed prices higher for the company's products.
The miner's underlying earnings totaled $345 million for the full year, compared to a loss of $102 million in 2020, according to the miner's parent company, Anglo American.
This year, the miner reported that “The diamond industry continued to recover from the impacts of the Covid-19 pandemic during 2021."“As downstream and midstream demand conditions continued to improve, rough diamond production and prices increased throughout the year, following the significant reductions seen at the start of the pandemic.”
While rough sales volume increased 56 percent to 33.4 million carats, De Beers' total revenue increased by 66 percent to $5.60 billion for the fiscal year ending December 31. The company's rough price index, which tracks valuations on a like-for-like basis, increased by 11 percent, with the average realized price increasing by 10 percent to $146 per carat, according to the company's financial results.
In addition, “Rough diamond demand is expected to remain steady as the midstream continues to operate with lower stock levels and manufacturing below full capacity,” Demand was strong at the February sight, which took place this week, prompting the company to raise prices for smaller items by an estimated 5 percent, according to Rapaport News, which broke the story first.
According to De Beers, diamond jewelry sales in the United States and mainland China experienced positive growth in the first half of 2021, even when compared to pre-pandemic levels in 2019. Because of the government restrictions, consumers in the United States had accumulated savings during the lockdown period and diverted funds away from luxury travel, according to the company. Other consumer markets were slower to recover in the first half of the year, but the second half saw a more positive trend throughout the entire international diamond value chain, according to the report.
De Beers anticipates that consumer demand for diamond jewelry will continue to grow as a result of the recovery in the United States economy, higher accumulated savings, and postponed marriages.
While this is happening, De Beers expects to produce between 30 and 33 million carats in 2022, which is consistent with the company's output of 32.3 million carats last year.