DTC Announces Rough Diamond Price Increase

The DTC has revealed today its third price hike of the year, effective from Sight 7 to be held next week. On average, prices will go up 5 percent.

The price hike is explained by growth in retail sales of diamond jewelry during the first half of the year. The DTC estimates the growth at around 7 percent, “resulting in a decline in polished stocks held in the cutting centers and a rise in the price of most categories of polished diamonds”.

Consumer confidence levels have increased and macro economic indicators are broadly positive, DTC says, indicating that the environment will be in place to support continued strong consumer demand in the second half of 2004. 

“Therefore the price increase is based on the fundamentals of the market as indicated by a strong first half and is further supported by expectations of continued growth in H2.”

DTC increased prices by 3 percent prior to Sight 1 in January and again before Sight 3, by another 5 percent. With the last official hike, prices have increased 13 percent on average so far this year, but in some items – especially the Indian goods - prices have been pushed up at least 15 percent.

BHP Billiton and Rio Tinto, both of whom mine in Canada’s Northwest Territories, have outpaced De Beers with much higher price increases this year.