Rapaport News


Rough Markets


Advanced search
Latest Articles
Rough Markets
Polished Markets

De Beers Allows Deferrals at $505M Sale

Clients ask to delay purchases of lower-value goods.
Sep 12, 2018 9:50 AM   By Joshua Freedman
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... De Beers’ sales slipped to $505 million at its seventh cycle this year as the miner allowed sightholders to refuse allocations of cheaper rough diamonds.

The proceeds — which include last week’s sight — were marginally lower than the $507 million it reported for the equivalent period a year ago, De Beers said Tuesday. Sales dropped 5% from $533 million in the sixth sales cycle in July.

While sightholders must generally commit to a yearlong buying plan, De Beers usually allows them to change the delivery schedule for rough-diamond allocations at the eighth sight of the year, which is the midway point of the annual intention-to-offer (ITO) period. That “re-phasing” process enables sightholders to defer some of their allocated goods for the second half of the ITO period to later in the year. However, this year, some customers asked De Beers to allow that rescheduling for lower-value goods ahead of the seventh sight, a spokesperson for the company said. Clients must still make the purchases by the end of the year.

The producer allowed similar deferrals in December 2016 when Indian demonetization resulted in weakened demand for cheaper goods.

The market for lower-priced rough has slowed in recent years due to oversupply, lower manufacturing profit margins and the depreciation of the Indian rupee, Bloomberg reported last week. De Beers’ new synthetics brand, Lightbox, also provides competition for the category, the news service added.

The company’s rough sales declined 2% to $3.93 billion in the first seven sales of 2018, according to Rapaport calculations.

Image: A truck at a De Beers mine.
Tags: De Beers, Deferrals, Demonetization, intention to offer, ito, Joshua Freedman, Lightbox, lower-value goods, Rapaport News, sight, Sightholders, Synthetics
Similar Articles
Dubai Diamond ExchangeAntwerp, Dubai Upbeat on Rough-Tender Market
Jan 12, 2021
The largest rough-trading centers face a busy January as adaptations have...
Top Miners Release Dates of 2021 Rough Sales
Stargems Rough Sale Sets Dubai Record
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us