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De Beers Sale Points to Steady Rough Demand
Feb 28, 2017 4:43 AM
By Joshua Freedman
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RAPAPORT... De Beers reported rough diamond sales of $545 million in
February as demand remained steady from the beginning of the year.
Sightholders noted an improvement in market conditions for
the first two months of the year, particularly after Indian demand slumped in
November due to the government’s demonetization policy.
Manufacturing has returned to normal, and the effect of
demonetization has stabilized, explained a Mumbai-based dealer.
Demand for lower-quality, smaller rough, which was
particularly affected by the Indian crisis, rebounded this month, sightholders
observed. These goods are now selling at near-double-digit premiums on the
secondary market after De Beers sold fewer goods in November and December and
reduced prices in January.
De Beers prices firmed by about 1 percent on average,
sightholders estimated, while premiums decreased for most categories on the
dealer market.
“We continued to see good demand across our product range in
the second sales cycle, which was in line with expectations at this time of
year,” said Bruce Cleaver, De Beers chief executive officer. “Sentiment remains
positive heading into the Hong Kong International Jewellery Show this week – an
important barometer of trade confidence.”
De Beers sales in the first two months of the year increased
10 percent to $1.27 billion, according to Rapaport records, after the company
restated the size of its January sale to $729 million. Sales in February were 12
percent lower than a year ago.
The next sight starts on March 27 and is the final sight of
the contract year.
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Tags:
De Beers, Demonetization, India, Joshua Freedman, Rapaport News, rough market, rough sales, Sightholders, Sights
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