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Rapaport reported that last week, De Beers sightholders refused about half of their allocated supply. As a result, the value of gems sold at the sight came to just $200 million. According to the news outlet, the refusals continue a trend that began months ago.
Rapaport reported that last week, De Beers sightholders refused about half of their allocated supply. As a result, the value of gems sold at the sight came to just $200 million. According to the news outlet, the refusals continue a trend that began months ago.
As quoted in the market news:
“The mood is the worst I’ve seen over the past few sights,” Harari said. “It’s no longer just a question of price; there are no buyers for polished and only demand for a few items.”
At the previous sight in August, De Beers allowed sightholders to defer up to 75 percent of allocated supply whilst cutting prices by 8 percent to 10 percent. The company also allowed sightholders to re-phase their in-plan allocations for the six sights from October to the end of the current contract year in March.
“De Beers reduced prices in August but it wasn’t enough because polished prices continue to fall,” said a Mumbai-based sightholder. “There are enough polished goods for the season and even if there aren’t, let the retailers look for the goods. There’s no point in buying [rough] when you can’t make a profit.”