Prices rise, premiums drop and liquidity tightens.
De Beers sight number 3 closed with an estimated value of $700 million after the mining company raised its rough diamond prices by 3 percent to 4 percent. Box assortments were relatively unchanged and some ex-plan was offered. Trading on the secondary market subsequently slowed and premiums declined.
“The market for second-hand boxes is dead,” said a sight participant. “The price increase was expected but many boxes are now very expensive.”
David Johnson, head of midstream communications for De Beers, acknowledged that prices were adjusted by low single digit percentages. He reported that there was good demand for rough and that sentiment was still positive among sightholders.
“We always look at prevailing conditions in the industry and base our pricing on that performance,” Johnson said. “We saw a fairly strong first quarter and March was good with positive reports from the Hong Kong and Basel shows.”
[two_third]ALROSA also adjusted prices during its March trading session, raising prices for some categories and decreasing for others, a spokesperson for ALROSA reported. On average prices stayed at almost the same level as in February, the spokesperson added. ALROSA contract clients that spoke with Rapaport News said the company kept prices basically stable at the April trading session that had just begun at press time.[/two_third][one_third_last]
“Rapaport estimates that rough prices have increased by approximately 7 percent to 10 percent since the beginning of 2014.”
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