De Beers Enables 75% Deferrals at August Sight

Jul 28, 2015 8:43 AM By Avi Krawitz

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RAPAPORT... De Beers has informed sightholders they can defer up to 75 percent of their allocated rough supply at the August sight in light of ongoing weak market conditions, company spokespersons confirmed to Rapaport News.

“We put a note on the sightholder extranet yesterday to say that we’ve looked at how our sales approach for the remainder of the current intention to offer (ITO) period can provide sightholders with maximum flexibility and support through this difficult period,” said Lynette Gould, De Beers head of media relations.

Gould explained that as of sight 7, scheduled for the week of August 24, sightholders will be provided with:

Allocation flexibility

Sightholders will have the option ahead of sight 7 to adjust their in-plan delivery for the sight to anywhere from 25 percent to 100 percent of its current level. Goods not taken at the sight will be deferred with no impact on demonstrated demand.

Real-time demand flexibility

At sight 7 itself, should sightholders decide after they’ve viewed the goods that they wish to purchase more, they will be able to increase their purchase level back up to a maximum of 100 percent of their original in-plan allocation for sight 7 and purchase any goods that were deferred from previous sights (subject to availability).

Re-phasing flexibility

Once the August sight is complete, all planned sightholders will have the option to re-phase the entirety of their remaining in-plan allocation (inclusive of any prior and sight 7 deferrals) for the rest of the current ITO period across the remaining six sights (i.e. sights 8, 9 and 10 of 2015 and sights 1, 2 and 3 of 2016).

“We recognize that it’s a challenging period for our customers and this provides them with a lot of extra flexibility during this time,” Gould said. “We’re looking to provide a platform for better industry prospects through the substantial additional flexibility outlined above, coupled with the continuing support we will provide during the rest of the year.”

Tags: Avi Krawitz, De Beers, diamonds, Rapaport, Sightholders