News

Advanced Search

De Beers Raises Prices for Third Sight in a Row

Feb 23, 2021 5:19 AM   By Joshua Freedman
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... 
De Beers has increased rough-diamond prices by an average of around 4% to 5% at this week’s sight as momentum in the market continues.

The changes focused on rough above 1 carat, with prices of smaller diamonds stable, market insiders told Rapaport News. The hikes were around 2% to 4% in the 1- to 2-carat category, reaching up to 10% in the 5- to 10-carat sizes, a sightholder reported.

“They’ve increased prices by a significant amount — more than the market was expecting,” one of the sources said Monday.

The price rise was De Beers’ third in a row, after increases at the December and January sales, sources said. Polished trading has strengthened since December as retailers have restocked following the holidays and because of demand during the Chinese New Year and Valentine’s Day periods.

Rough sales have been buoyant, with De Beers’ January sight garnering the company’s highest monthly sales total in three years. The larger rough sizes — 0.75 carats and higher — have seen stronger activity in line with demand for the corresponding polished categories. Premiums on the secondary market have also soared.

“In October, November and December, polished sales were generally very good,” a sightholder commented. “So in January and February, people are still sitting on good liquidity.”

However, the surge in rough sales has fueled concerns about an oversupply or a squeeze on profit margins if polished sales decrease following the February selling season.

“People are paying much more for the rough than they should, because the demand is there — but [polished] prices are still stable,” an executive at a cutting firm said. “So I think it is again a time in which manufacturers will start losing money.”

De Beers declined to comment.

Image: A rough diamond. (Ben Perry/Armoury Films/De Beers)
Tags: Chinese New Year, De Beers, Joshua Freedman, mining, prices, rough, Rough Diamonds, rough prices, rough sales, Sightholders, Sights, Valentine’s Day
Similar Articles
Alrosa rough diamondAlrosa Follows De Beers with Price Rise
Jul 29, 2021
Alrosa increased its rough-diamond prices by around an average of 7% at this week’s contract sale, customers of the miner
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.