The Diamond Trading Company (DTC), marketing arm of DeBeers group, has increased the prices of rough diamond by 5-15% in its July sight.
The DTC announced the increase by an average of over 5% at its July sight, the sixth sight of the year. Prices charged for rough diamonds producing higher-quality polished diamonds larger than one carat increased by as much as 15%.
This sight had an estimated value of $720 million, up marginally from June 2008.
The price rise came amid strong demand for diamonds in Asian emerging markets and tight supply, which led to price increases of 8.5% earlier this year.
?There is shortage of high-quality diamond in the world market while demand for such diamond is good especially in China, India and Russia,? a leading cut and polished diamond exporter said.
Majority sight-holders were serious of the price increases implemented by the DeBeers marketing unit at its July sight week, sources said.
The higher value of the sight, the highest of the year so far, had more to do with the fulfillment of intentions to offer (ITO) rather than the recent price increase. Sight-holders reported little change in the assortment of goods, but said that high quality goods were of especially good colour and clarity, according to Rapaport Tradewire report.
De Beers raised overall rough prices by 5% for SI plus goods with rough yielding and one carat plus SI polished prices increased by 10-15% and 0.20 carat plus increased 3-5%, report said.
De Beers, which controls around 40% of the world diamond market, posted flat output of diamonds last year at 51 million carats and a steady result is expected in 2008.