De Beers is considering giving a helping hand to its struggling buyers following weak diamond sales that hit the industry last year.
Bloomberg cited unnamed sources as saying that that the diamond giant outlined plans last week to place its customers into three categories – dealers, manufacturers and integrated retailers.
This was expected to help De Beers ensure that buyers get the rough best suited to their needs and business type.
Image credit: kschneider2991 (Pixabay)
The diamond industry experienced an oversupply of polished diamonds last year, which led to sharp price drops than for rough stones.
De Beers was forced to lower prices across the board by about 5%.
It also offered flexibility to its diamond buyers as midstream trading conditions were in the process of rebalancing.
Media reports also claimed recently that De Beers is considering significant changes to the way it sells diamonds.
The Anglo American unit, is reportedly planning to significantly cut the number of its sightholders as well as reconsidering the way that diamonds are allocated among the group.
De Beers’ current six-year contract with buyers expires at the end of this year.
It is anticipated that the group will strengthen the remaining businesses by reducing the number of its customers.
A De Beers spokesperson said they will communicate directly with customers in the coming months about the new contract, which will focus on maximizing the opportunities in the new diamond world.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
