News from our businesses and markets
Addressing a Sightholder reception during the first De Beers Sight of 2016, Philippe Mellier, Chief Executive, De Beers Group, today said that there were some encouraging signs in the diamond industry at the start of 2016. Mr Mellier cautioned, however, that the recovery in the diamond sector remained delicate and that there was likely to be some volatility in 2016.
Highlighting some of the positive developments, Mr Mellier stated: “We have seen polished diamond prices start to stabilise and even increase in certain areas, we have seen some encouraging early indications from holiday season sales in the US consumer market and we have seen greater trading activity than at the end of 2015”. However, he also stated that: “There continues to be uncertainty regarding the macroeconomic outlook, currency pressures have the potential to weigh on downstream demand in a number of locations and we will need to see how retail restocking appetites develop”.
Recognising the crucial role played by a number of midstream diamond businesses in addressing recent difficulties, Mr Mellier stated: “2015’s challenges were very different from those presented by the demand crisis that followed the 2008 downturn, but that does not mean they were any less difficult to deal with… We all had to take difficult decisions, considering trade-offs between what was right for our businesses and what was right for the industry. We all had to absorb the impact of negative trading conditions in the short-term so as to protect the industry’s long-term interests. And we all had to employ our hard-earned experience and expertise to navigate through some very difficult times.”
Setting out De Beers’ approach to supporting and accelerating improvements in the diamond industry, Mr Mellier stated that De Beers would focus on both supply and demand. Supply-side actions will include a reorganisation of the Global Sightholder Sales business unit, while on the demand side Mr Mellier stated that De Beers would continue to invest in non-proprietary marketing in 2016 so that it could: “ensure that consumers – young and old, eastern and western – continue to celebrate their own facet of forever with the magic of diamonds.”
A full copy of the speech is available here.
-ends-
Contact
David Johnson
Press Office
Tel: +44 (0) 20 7430 3434
[email protected]
About The De Beers Group of Companies
De Beers is a member of the Anglo American group. Established in 1888, De Beers is the world’s leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people (directly and as contractors) across the diamond pipeline, and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers visit www.debeersgroup.com.