RAPAPORT... The Diamond Trading Company (DTC) raised prices by an average 7 percent at the February sight which started on Monday. Sources at the sight indicated that the increase impacted all categories of rough and were in line with expectations. The sight had an estimated value of around $600 million. DTC kept prices relatively stable in January causing premiums on DTC boxes to increase through the month to around an average 10 percent. The company raised prices by 27 percent through 2010 but said it expects the pace of price inflation to slow in 2011.
De Beers spokesperson Lynette Gould confirmed that there have been increases on some boxes which amounted to an average mid-to-high single digit hikes. “These reflect the data DTC has been collecting from the multiple reference sources the company uses to inform its pricing,” she explained.
Prices at rough tenders also rose this month with Petra Diamonds reporting that it saw an increase of between 6 percent and 8 percent at its February tender, while Trans Hex noted that it achieved record prices at its tender of South African production. Manufacturers noted a scarcity of supply which is exerting pressure on prices. “There is an availability issue where supply is not meeting demand,” said an Indian-based manufacturer. “Demand for diamond jewelry has increased in all markets but we are not getting sufficient supply.”
DTC is expected to keep its supply volumes in line with 2010 levels after De Beers projected that production would ramp up to 38 million carats in 2011. De Beers registered output of 33 million carats in 2010 but supplied 38 million carats worth to sightholders.
Gould explained that the difference resulted from excess inventory, consisting of mainly low value goods, that couldn't be sold during the economic crisis in 2009. “That supply was then carried forward to 2010 and, when the market improved, we were able to sell those carats,” she added. “Today, we only have a normal working inventory.”
De Beers spokesperson Lynette Gould confirmed that there have been increases on some boxes which amounted to an average mid-to-high single digit hikes. “These reflect the data DTC has been collecting from the multiple reference sources the company uses to inform its pricing,” she explained.
Prices at rough tenders also rose this month with Petra Diamonds reporting that it saw an increase of between 6 percent and 8 percent at its February tender, while Trans Hex noted that it achieved record prices at its tender of South African production. Manufacturers noted a scarcity of supply which is exerting pressure on prices. “There is an availability issue where supply is not meeting demand,” said an Indian-based manufacturer. “Demand for diamond jewelry has increased in all markets but we are not getting sufficient supply.”
DTC is expected to keep its supply volumes in line with 2010 levels after De Beers projected that production would ramp up to 38 million carats in 2011. De Beers registered output of 33 million carats in 2010 but supplied 38 million carats worth to sightholders.
Gould explained that the difference resulted from excess inventory, consisting of mainly low value goods, that couldn't be sold during the economic crisis in 2009. “That supply was then carried forward to 2010 and, when the market improved, we were able to sell those carats,” she added. “Today, we only have a normal working inventory.”
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