RAPAPORT… The Diamond Trading Company’s (DTC) June sight had an estimated value of $500 million, according to interviews with sight participants. Reports indicated that De Beers prices rose by an average of 3 percent to 4 percent at the sight, with these increases being well received overall by sightholders.
Reports from BHP Billiton’s recent tender and Rio Tinto’s latest sale indicated an average price increase of 4 percent to 7 percent.
Sightholders noted that there continues to be strong activity in the rough market, with notable shortages of goods. Rough premiums that sightholders realized in the secondary market had softened in the weeks prior to the sight.
One sightholder observed that premiums and demand were bound to soften, as the macroeconomic situation has grown volatile on the back of the European debt crisis.
“So, people are a bit scared,” he said. “The market being driven by supply constraints rather than demand.”
Another sightholder dismissed claims that a speculative environment is developing, as there is strong demand coming out of China and India. He added that demand is also being fueled by the need to supply the vast factories in Surat with goods.
DTC spokesperson Louise Prior said that demand, as viewed through sightholder applications, remained strong at the sight, adding that reports from the JCK Las Vegas show this week had brought a renewed sense of optimism to sightholders.
For the first half of the year, Rapaport estimates indicate that DTC’s sales have risen 76 percent year on year to $2.46 billion. Sales remain 25 percent below their levels during the same period of 2008.
|DTC Sight Estimates|
|Sight Start Date ’10||2010||2009||2008|
|Sight 1||January, 18||$550 mil||$129 mil||$628 mil|
|Sight 2||February, 17||$525 mil||$142 mil||$639 mil|
|Sight 3||March, 22||$420 mil||$258 mil||$585 mil|
|Sight 4||April, 26||$470 mil||$323 mil||$703 mil|
|Sight 5||June, 7||$500 mil||$548 mil||$745 mil|
|Sight 6||July, 18||$371 mil||$774 mil|
|Sight 7||August, 23||$509 mil||$780 mil|
|Sight 8||October, 4||$318 mil||$645 mil|
|Sight 9||November, 8||$345 mil||$323 mil|
|Sight 10||December, 13||$297 mil||$108 mil|
|Full-Year Sales||$3,240 mil||$5,930 mil|