DTC May Sight Estimated at $520M

Avi Krawitz

The Diamond Trading Company’s (DTC) May sight achieved an estimated value of $520 ‎million. The De Beers distribution unit made slight adjustments on its prices, by increasing some ‎boxes while decreasing others. ‎

Louise Prior, the head of sightholder services and communications for DTC, noted that ‎while the adjustments were minor, the overall price trend was up as polished demand has been steady. “We are seeing ‎encouraging signs from the U.S., while demand from China and India continues to drive ‎growth,” Prior said.‎

Sight participants were less enthusiastic and some stressed that there is no room for rough ‎price increases at the moment. “The adjustments were not well accepted as people are ‎not really making money at the moment,” one sight participant said. “I wouldn’t say they ‎are losing but it’s just not [profitable] at the moment.”‎

Sightholders noted that there is relatively little activity in the secondary markets and DTC boxes are ‎trading at low premiums of around 3 percent to 4 percent. There is some demand for ‎Indian goods but no category stands out as particularly strong at the moment.‎

The May sight had roughly the same value as the previous sight in March; however, it was 25 percent below the ‎estimated sight value of one year ago. Rapaport estimates indicate that DTC sales fell 16 ‎percent year on year during the first four months of the year. De Beers earlier reported ‎that production in the first quarter fell 16 percent to 6.2 million carats. ‎

The sight was the first of the new three-year contract between DTC and its new list of ‎sightholders.   ‎

Source Rapaport