The value of diamonds sold by Debswana in the first nine months of the year slowed to P37.1 billion, from P43.2 billion over the same period last year, as lower demand and pricing in the global market hit the precious stones.
The nine month figures for this year are however still considerably higher than comparative figures before 2022, reflecting the generally stronger sales enjoyed by rough diamonds since last year.
However, on a quarterly basis, the third quarter sales of P8.4 billion are the lowest reported by Debswana in the third quarter since 2015, excluding the COVID-19 year of 2020.
Bank of Botswana figures released on Tuesday show that third quarter sales by Debswana dropped 31% year on year.
Debswana sells 75% of its production into the De Beers’ ecosystem and the balance to Okavango Diamond Company (ODC), the state-owned diamond trader.
Rough diamond prices and demand have tumbled this year, owing to a glut in the market caused by record sales last year, combined with the uncertain global economic outlook this year.
Demand for diamond jewellery in the United States, which accounts for 54% of the market, has particularly been under pressure this year, with the growth of synthetics only adding to the rough diamond sector’s troubles.
De Beers, which co-owns Debswana alongside government, has relaxed its rough diamond sales for the remainder of the year, while the ODC has suspended its November auction and could do the same with its December sale. The actions are designed to ease supply in the midstream, in order to resolve the market glut and support healthy production and prices next year.
