Price movement aligns rough and polished stones in marketplace.
Diamond prices were dropped by an average of 8% at De Beers’ Diamond Trading Company (DTC) sight meet held this week following the International India Jewellery Week (IIJW).
It is believed that about $580 million (£366m) of rough and polished material was at the sight, with all thought to have sold.
According to Rapaport, sightholders noted that price adjustments were implemented across the board with larger price reductions of about 17% for better-quality goods, while commercial quality pique stones were subject to more conservative price reductions.
It is believed that the gap between rough and polished prices has narrowed to about 5%.
Louise Prior, head of sightholder services and communications for DTC, told Rapaport that DTC had a “four point plan” for the recent sightholder sale, which included price adjustments to reflect a fair return on rough to polished in line with current polished demand.
Prior said: “Sightholders have commented on the value in our boxes and the mood is much more upbeat this sight than previously.”
She also noted that De Beers is planning to mine according to demand.
Earlier this month Anglo American announced the completion of its acquisition of a 40% shareholding in De Beers from CHL, representing the Oppenheimer family interests, increasing Anglo American’s shareholding in De Beers to 85%.
The acquisition agreement was made in November last year, with Anglo American paying a total cash consideration of $5.2 billion (£3.3bn), comprising the agreed purchase price of $5.1 billion (£3.2bn) and a number of adjustments as provided for under the agreement.