The sales of Diamond at De Beers dropped off in the first part of the year as the group is facing slowing demand for its smaller products.
The company reported a big drop in its diamond sales. It says that it was dragged down by the decreasing demand for its smaller and cheaper stones.
The sales of the company dropped by approximately 25 percent in the initial so-called cycle of 2018, a decrease amounting to $167 million to $505 million.
De Beers sold just $505 million in its first sale of the year, as compared with the $672 million that was reported last year and $729 million in 2017. January has been considered as one of the stronger months in recent years as the customers rebuild stock after the crucial holiday season.
The figures also revealed a slowdown from the final cycle of the previous year, when the firm was able to sell approximately $544 million of the stones.
De Beers splits the year into ten parts, or cycles, in order to report its sales.
Bruce Cleaver, the chief executive of the company, stated: “Rough diamond sales during the first sales cycle of 2019 were lower than those for the equivalent period last year, reflecting higher than normal sales in the previous cycle and the slow movement of lower value rough diamonds through the pipeline.”
The news comes less than a week following the announcement of the Anglo-American owned diamond producer that it had raised its 2018 production to 35.3 million carats, an increase of six percent, as the output increased at its Orapa mine.
The company set its production guidance for the year down slightly from that of 2018, at between 31 million and 33 million carats.
Diamond miners are struggling across the board, especially those who are producing cheaper and smaller gems where there is too much supply. Manufacturers and traders that purchase them are also struggling to make a profit. Last month, some of the customers of Rio Tinto Group refused to buy cheaper diamonds, while De Beers has been compelled to cut its prices and offer concessions to its buyers.