The Diamond Trading Company (DTC), sales arm of global diamond major De Beers, has reduced its rough diamond supply by nearly 18% to $350 million for July sight from June sight $425 million, despite good demand from its sight holders.
DTC sales from the first six sights this year amounted to $1.44 billion, which was down 62% from the same period in 2008 due to production cut.
?Amid price rise ranging from 3% to 15% in recent months, there is a shortage of select rough quality in the market and some sight holders expected more supplies for July from DTC,? a leading diamond broker said. Demand has consistently increased since May 2009 as diamantaires, particularly in India, have resumed manufacturing again, according to Rapaport report.
The August sight will need to be larger so that sight holders can adequately prepare for the fourth quarter and for India?s Diwali season in October in particular, Louise Prior, DTC spokesperson said.
He added that the next sight, beginning August 24, would likely be bigger; DTC will be able to meet sight holder demand, as new production filters through to the market.
?Price rise of rough diamond cannot be absorbed on the market due to depressed market conditions in US. For the first five months of this year, polished imports to US have been consistently down by about half from trading levels in 2008,? a representative of DTC sight holder said. Data for US net polished imports showed even greater declines from 1 year ago.