Diamond manufacturers say the price reductions implemented by De Beers for smaller rough diamonds at this week's sight are insufficient to help their profitability.
Rapaport quoted unnamed sources as saying that the miner reduced the price of 3-grainer (0.75-carat) and smaller goods by 4% to 6%.
The sources also projected that the price decline was around 4% in 4- to 6-grainers (1 to 1.5 carats), while that of 5 to 10-carat rough rose marginally, but this was partially attributable to adjustments to the assortments.
A sightholder with knowledge of the situation said that manufacturers who purchased De Beers products at the February sight are discovering that the final polished product, which requires approximately six to eight weeks to be ready, is selling at a loss or break-even prices.
“The polished market is still very depressed,” said another.
According to the sources, the disparity between De Beers' prices and those on the external market has since increased, causing the business to implement this partial correction.
“Had they not reduced prices, there would have been some refusals,” a sightholder said. “This will help them maintain sales volume.”
There had been a weak retail demand in both the United States and China although there were indications of a recovery in polished sales.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
