De Beers’ February Sight Seen at $650 Million

“De Beers surprised us because everyone thought they would raise prices at the sight,” an Israel-based rough dealer told Diamonds.net. “Overall, sightholders were happy and the mood was more positive than at previous sights.”

Prices of rough diamonds at De Beers second sight of the year last month were for the most part unchanged with an estimated sight value of $650 million. 

An Indian sightholder said that the rough market is more optimistic following the sight, as premiums were high before the sight and with little room for profit for manufacturers, according to the report.

David Johnson, head of midstream communications for De Beers, stressed that De Beers is taking a cautious approach to raising prices to ensure that its prices reflect the true state of the market.

“Polished is moving in the right direction and polished inventory has reduced slightly, whereas rough premiums had run ahead of the market [prior to the February sight],” Johnson said. “We’re taking a steady approach to prices.”

De Beers raised prices by an average 5 percent at its January sight prompted by strong demand as manufacturers increased production after the Diwali break and had reduced their rough purchases toward the end of 2013. Rough demand remained strong despite the price hike although sightholders expressed concern a further increase in February would be unsustainable.