Aber Clients Report Sharp Price Hikes at Latest Rough Allocation

Canadian producer Aber increased prices of rough diamonds by as much as 10 percent at their latest allocation, according to clients. A source in the company says on average prices were unchanged.

Aber clients told IDEX Online that prices were based on the higher prices achieved at Aber’s open tender, held last month in lieu of an allocation to regular clients. According to Aber, who is 40 percent owners of the Diavik diamond mine, winning bids at the tender were comparable to their regular prices.

A source at Aber told IDEX Online that unlike client perceptions, the company has not based their prices on the highest tender bids. In fact, says the source, the prices were quite a bit under, taking into consideration if the trend at the tender was up or down.

“We have not increased prices. We kept the same average [price] which we had before the tender, but we reviewed prices and rebalanced them.”

The divide between the sides is possibly indicative of a certain rift between Aber and its clients. An increasing number have been complaining about Aber's prices and even its policies.

One client noted that after prices of rough diamonds in the market peaked, he does not understand how he can manufacture the goods profitably.

Another noted that if they were to sell the goods as is in the secondary market, they would have to sell them at a loss.

Finally, an Aber client went as far as saying they were crazy. “I don’t understand them,” he said. “They are cynically taking advantage of their clients!”