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Rough Market Wakes Up at Large De Beers Sight
Jan 24, 2017 4:35 AM
By Rapaport News
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RAPAPORT... De Beers rough-diamond sales jumped 32 percent year on year to $720
million during its first sales cycle of 2017 as manufacturers restocked
following the holiday season.
January is a seasonally busy month for the rough sector as
traders and manufacturers return to the market after working down their
inventories over the festive selling period. Even so, the miner
recorded its largest January sight since 2014, according to Rapaport records.
“We saw good demand across the majority of our assortment
during the first sales cycle of the year, as the industry entered the period
when rough diamond demand is traditionally strongest,” said Bruce Cleaver, De
Beers chief executive officer.
Demand for smaller goods, while still weaker than larger
stones, started to pick up again after being hurt by the Indian government’s
decision to invalidate INR 500 and INR 1,000 currency notes in November. This
move, known as demonetization, sapped liquidity mainly from the smaller
manufacturers. Prices of smaller goods were relatively
steady, in contrast to an increase among larger
goods, sightholders reported.
The industry is slowly getting used to the new environment
where smaller companies who deal in cash have less buying power, sightholders
said. Indian cutting factories have started to return to activity after the
liquidity crisis stopped many from opening up after Diwali, with demand for the
smaller goods picking up gradually.
“While the reopening of some diamond polishing operations in
India saw something of an increase in demand for smaller, lower-quality rough
diamonds, we maintain a cautious outlook for these categories as the Indian
industry continues to adjust to the post-demonetization environment,” Cleaver
added.
Image: Newscast
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Tags:
Bruce Cleaver, De Beers, Rapaport News, rough market, Rough Production, Sightholders, Sights
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