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RAPAPORT...De Beers rough prices have increased by mid- to high-single digit percentages since the beginning of 2013, Varda Shine, De Beers executive president of global sightholder sales, told Rapaport News. She added that certain categories of rough have seen double digit percentage growth so far this year.
“We’re seeing that retail sales are better, inventory levels at the cutting centers have gone down, U.S. economic indicators are improving, and we’ve seen the public listed retailers – Tiffany, Sterling, Zale, Blue Nile – have all done well in the first quarter. So this year is looking like a good year,” Shine said.
Shine reported that De Beers price increase at the March sight was generally well received by the market, while the increase at the most recent May sight was considered a bit more than it really was. While overall diamond trading has slumped slightly in the second quarter, Shine noted that April and May are generally a quieter period for the industry.
De Beers expects that consumer demand for diamonds in 2013 will outpace the reported 3 percent growth experienced in 2012. Shine noted that while the pace of Chinese demand is expected to slow, it is still expected to post double digit increases this year, while the goods that are popular in China – those that produce 0.20- to 0.90-carat polished, have shown the strongest growth so far this year. Shine added that other key markets, including India and the U.S., are showing steady growth.
“Overall, diamond demand is still growing and it’s a matter of managing expectations,” she stressed.
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