The De Beers June sight closed with an estimated value of $640 million as demand for rough diamonds remained firm. Prices and assortments were largely unchanged from the previous sight, although sightholders reported minor price adjustments on select boxes.
There were ex-plan goods – rough diamonds in excess of sightholders’ initial application for goods – offered as demand rose during sight week. While rough demand was healthy, sightholders expressed continued concerns over tight manufacturing profit margins due to persistent high rough prices relative to polished diamonds. Rapaport News estimates that rough prices have increased by between 7 percent and 10 percent since the beginning of the year.
“Rough prices have increased by between 7 percent and 10 percent since the beginning of the year.”
“There isn’t much profit in the goods,” said one sightholder. “Sightholders used to be able to buy rough, add value and see some profit from manufacturing when you sold the polished. If you are a master at adding value, then you could make even more profit. However, today, De Beers is pricing their rough as if they are giving the goods to you at no profit and only if you really are a master at adding value, can you make some profit.”