Image credit: DTC Botswana
Two leading global diamond companies, De Beers and Alrosa recorded “rock-bottom” sales in June as buyers rejected their high rough prices, according to media reports.
Rapaport reports that buyers were favouring cheaper parcels from smaller suppliers.
“[The major miners] want to hold on to prices, so people don’t see any [incentive] to buy because it’s difficult to sell and make money,” an unnamed sightholder was quoted as saying.
“[Manufacturers and dealers] are already sitting on large inventories of polished and rough.”
Smaller diamond suppliers conducting tenders in Antwerp were said to have sold goods at prices ranging from 15% to 25% lower compared to February levels.
De Beers and Alrosa allegedly maintained their prices at pre-Covid-19, which discouraged buyers.
However, an unnamed dealer was quoted as saying that De Beers or Alrosa would fetch prices up to 30% below their current levels should they put their monthly allocations on the open market.
“There is no appetite for rough, as factories [in India] have been operating on a very, very small capacity for a month,” the dealer said.
Meanwhile, another sightholder said sales of polished had not improved dramatically as stocks had not depleted.
“Factories have no reason to open, so why would we buy rough?,” said the unnamed sightholder.
De Beers conducted its June sight last week, with limited viewings in Antwerp.
The sight, according to Rapaport, had an estimated value of about $40 million.
Alrosa’s sale ended on June 15 and it is expected to publish its June data on July 10.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
