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DTC To Raise Rough Prices By 2% In Feb. Sight

Feb 15, 2006 6:25 AM   By Jeanette Goldman
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(Rapaport...February 15, 2006) De Beers’ marketing arm, the Diamond Trading Company (DTC,) will be increasing the price of rough diamonds by about 2 percent during the second sight of the year, to be held from February 20 to 24.

The following is a press release issued by the DTC on February 15:

Des Cavanagh, DTC Sales Director, has written to all our clients this morning advising them of a price rebalancing.

"It is important for the DTC to review its box prices on a frequent basis in order to align itself with the changing diamond market. This is intrinsically linked to the performance of the polished demand in the key consumer markets.

In line with the estimated 6-7 percent growth achieved in 2005 in these markets and the current 2006 growth forecast of 7 percent, we are re-balancing our prices from the February Sight, the overall effect of which will be an increase of under 2 percent. We have carefully taken into account current market fundamentals and the medium to long-term view, which we see as positive.

While 2006 has undoubtedly started with its challenges, we remain confident that the fundamentals of our business remain firm and that there will be opportunities for achieving real growth this year."

The prosperity of the diamond industry depends ultimately upon its stakeholders, upstream and downstream, being able to see past the short-term issues that might be exercising the markets and take a long-term perspective. The latest rebalancing of prices is predicated on our analysis of medium to long term fundamentals in the diamond industry, which we believe will continue to provide a sustainable platform for long-term growth. In the medium term, we remain confident that downstream growth this year will be at least as strong as it was in 2005.

Tags: De Beers, DTC
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