THE DIAMOND PAGE — Record set for CSO rough diamond sales

Sales of rough diamonds through DeBeers’ Central Selling Organization (CSO) were 28% higher in 1993 than in the previous year, DeBeers reports.

Sales for the year were US$4.4 billion compared with US$3.4 billion in 1992. Sales in the second half of the year, at US$1.8 billion, increased by 12% over the same period in 1992. This followed an extremely strong first half when CSO rough sales, at US$2.5 billion, had increased by 42% compared with the same period in 1992.

The CSO’s sales of rough diamonds between 1983 and 1993 are shown above in U.S. dollars:

The CSO raised rough prices by 1.5% in February, 1993, and this affected categories of rough diamonds above three-quarters of a carat where demand was strongest. Producers’ delivery entitlements are currently at 85%, having been increased from 80% in July, 1993, and from 75% in May, 1993. Although the general rough market appears satisfactory, there are some signs of oversupply in the lower, cheaper-quality range of rough diamonds. The market balance for these categories has been affected by the sale of rough diamonds from Russian and U.S. stockpiles, previously set aside for industrial and technical use.

Retail diamond jewelry sales have held up well, given a weak global economy. In 1992, world diamond jewellery sales were estimated to have been 55 million pieces (worth US$41 billion), of which the U.S. and Japan accounted for nearly 60%.

In 1993, the two main growth areas continue to be the U.S. and East Asia; Europe remains generally weak. Because of the strong yen, retail sales in Japan, while down in local currency, are ahead in dollar terms. However, because of the economic situation, the Japanese trade remains cautious. Depending on sales at the important Christmas season, world retail sales of diamond jewelry in 1993 are expected to be marginally higher than in 1992. The prospects for rough gem sales by the CSO will be determined ultimately by the continuing improvement of the world economy.

First Half Second Half Full Year

1983 887 million 712 million 1.6 billion

1984 945 million 668 million 1.6 billion

1985 837 million 986 million 1.8 billion

1986 1.2 billion 1.3 billion 2.6 billion

1987 1.6 billion 1.5 billion 3.1 billion

1988 2.2 billion 2.0 billion 4.2 billion

1989 2.3 billion 1.8 billion 4.1 billion

1990 2.5 billion 1.7 billion 4.2 billion

1991 2.1 billion 1.8 billion 3.9 billion

1992 1.8 billion 1.6 billion 3.4 billion

1993 2.5 billion 1.8 billion 4.4 billion