De Beers' trading arm raises raw diamond prices by 16 per cent in seven months
20 Aug 2008
Diamond Trading Corporation (DTC), the marketing arm of the world's top diamond miner De Beers, has again raised prices of raw or uncut diamonds, taking it to an increase of 16 per cent in the first seven months of 2008.
The current increase of 5 per cent in August comes on top of an earlier 8.5-per cent increase in April, and despite price increases the company's sales were boosted by overall strong demand.
The prices have, however, shown a continued rise and the strongest increases this year have been predominantly in roughs from which the highly sought after SI+ and +1ct polished grades are obtained.
Mahiar Borhanjoo, executive director, sales and client services, DTC, said,, ''DTC takes a long-term, sustainable view on its pricing and decisions are influenced first and foremost by demand for polished diamonds.''
DTC, which supplies around 40 per cent of rough diamonds by value in the global market, recorded a 10-per cent rise in sales in the first half of 2008. It said a slowdown in the US economy might have an impact on growth in second half sales.
The US retail market, which accounts for around half of all diamond jewellery sales, however, dampened the company's sales, as cheaper, mass market items using lower quality gems were proving more popular.
DYC said the impact of negative sales in the US were reduced to some extent by stronger growth in China, India, Russia and the Middle East.
''So far during 2008 DTC has seen strong and continuing consumer demand for most categories of polished diamonds, especially in the larger goods,'' Borhanjoo said.
With activities in sorting, valuing and diamond beneficiation, DTC has representative offices in the UK and South Africa, as well as joint venture operations in Botswana and Namibia with the governments of those countries.
