Diamond sales at Anglo American's De Beers drop in seventh cycle

Anglo American said on Tuesday that the value of rough diamond sales at its De Beers unit fell in the seventh cycle of this year.

The value dropped to $505m from $533m in the sixth cycle and $507m in the same cycle a year ago.

De Beers chief executive officer Bruce Cleaver said the group had allowed sightholders to "re-phase", i.e. defer, purchases of some smaller, lower value rough diamonds.

"Demand remains stable ahead of the September Hong Kong Jewellery & Gem Fair," he said.

Shore Capital analyst Yuen Low said that at least some of the current market weakness could be due to a weak Indian rupee.

"We expect that Indian sightholders are being allowed to defer purchases closer to Diwali in early November 2018, towards which demand for their finished products could be expected to pick-up, improving their cashflows," he said.

At 0912 BST, the shares were down 0.6% to 1,456p.