Smaller Sights In October As Financing Worries Weigh On Market
October 15, 14
(IDEX Online News) – Rough diamond sights held by De Beers and Alrosa in October were relatively small, particularly in light of the De Beers Sights held this year that have been in excess of $700 million.
The Sight reflected the fact that Indian diamond manufacturers will be closing down for at least three weeks from around October 20, while some plants will close down for four weeks. Consequently, some Indian manufacturers decided to defer their boxes until the next Sight in November.
In addition, the announcement by Belgian financial group KBC that it will be winding down the operations of the Antwerp Diamond Bank (ADB), meaning loans will have to be paid off in a fairly short space of time is leading to concerns in the market regarding financing. That is compounded by reports that Standard Chartered Bank and ABN Amro are looking to reduce their exposure to the diamond industry
There was low demand for goods, especially large expensive goods, and many boxes were traded below cost price, according to Bluedax.com.
"The general feeling in the secondary market is that prices should and will go down due to increasing liquidity problems and low profitably after manufacturing," Bluedax said.
There have also been many cases of late payment in the secondary market for rough that was bought several months ago, the firm commented.
Meanwhile, Mike Aggett Managing Director of H. Goldie and Co said: "Total goods sold this month are believed to be in the region $465 million, which included a range of Ex Plan material. Prices broadly remain unchanged with small reductions in certain boxes in the Fine, Commercial High and Rejection areas of between 1- 4 percent. Adjustments where applicable appear to be targeted to specific boxes maintaining the De Beers policy of continuous fine tuning to reflect market movements.
"Some boxes were refused, but we believe this was only in the region of $15 million-$20 million in total. Although Sightholders were invited to apply for additional goods during the Sight week there was very little interest overall and very little if any, was recycled."
BLUEDAX.COM Market Report Sight Oct 2014
| Box | Size | Prem/Credit |
| | | |
| PREP CUBES | -10 CT | 3%/90 DAYS |
| CLIV HIGE | +10 CT | 5%/90 DAYS |
| COL`D CLIV/MB | 3GR -10 CT | 9%/90 DAYS |
| COL`D SELECT MB | 2.5-10 CT | 7%/90 DAYS |
| CRYSTALS | 2.5-4 CT | 4%/60 DAYS |
| FINE | 2.5-4 CT | LIST/CASH |
| COL`D FINE | 2.5-4 CT | LIST/CASH |
| FINE | 4-8 GR | 4%/60 DAYS |
| SPOTTED Z | 4-8 GR | 3%/60 DAYS |
| CUBES | 4-8 GR | -3%/CASH |
| CHIPS | 4-8 GR | 1.25%/CASH |
| COL’D Z | 4-8 GR | 3 %/CASH |
| CRYSTALS | 4-8 GR | 2.5%/CASH |
| PREP LOW | 3-6 GR | 3%/90 DAYS |
| 2-3 BLACKS | 4-8 GR | 2.5%/120 DAYS 6% 90 ( PRE SIGHT) |
| 1-3 COL MXD Z (NON PIQE) | +11 – 8 GR | 7%/120 DAYS |
| 1-3 COL MXD Z (NON PIQE) | 8 GR | $770/120 DAYS |
| 1-3 COL MXD Z (NON PIQE) | 5/6 GR | $540/120 DAYS |
| 1-3 COL MXD Z (NON PIQE) | 3GR | $272/120 DAYS |
| 1-3 COL MXD Z (NON PIQE) | 2 GR | $188/120 DAYS |
| Z | - 3 GR (MELE) | 5%/60 DAYS OR 3%/CASH |
| Z | 3 GR | $585/120 DAYS |
| Z | -11+9 -9+7 | $240/60 DAYS |
| Z-7 | -7 | LIST/75 DAYS |
| MB HIGH | -3 GR+7 | LIST/CASH |
| INDIAN LONGS | -3GR/+5 | 6%/120 DAYS |
| INDIAN FLATS | +/- 3GR | 2%/120 DAYS |
| CUBES | -3 GR+7 | -2%/CASH |
| MIX CRYSTALS | -3GR /+5 | 6%/60 DAYS |
| 1 ST COL REJ (H-I) | +11/ +7 | 6%/90 DAYS |
| 1 ST COL REJ (H-I) | -7+3 | 6%/105 DAYS |
| MB CLIV | -3GR+7 | -2%/CASH |
| Z/ CLIV | -11 | 4.5%/120 DAYS |
| MIX REJ | | 8%/90 DAYS |
| CLIV HIGE | +10 CT | 5%/90 DAYS |
BLUEDAX.COM Market Report Russian Goods Oct 2014 Box Sold $/Ct Credit 5-10 CL WHITE $3,875 60 DAYS 5-10 CT 4BLK CLIV&MB WHITE $825 90 DAYS 5-10 CT REJ WHITE $210 60 DAYS 5-10 CT BLK CLIV WHITE $1,625 90 DAYS 5-10 BLK MB WHITE $2,020 60 DAYS 4CT TO 8 GR BLK MB WHITE $1,025 75 DAYS 4CT TO 8 GR 4BLK CLIV MB WHITE $390 75 DAYS 4CT TO 8 GR ST SHAPE WHITE $2,350 60 DAYS 4CT TO 8 GR CL WHITE $1,900 60 DAYS 4CT TO 8 GR CL YELLOW $1,100 90 DAYS 4CT TO 8 GR BLK Z WHITE $1,370 60 DAYS 4 TO 6 GRS SAWABLES $950 CASH / $ 970 120 DAYS 4 TO 6 GRS BLK MB $510 60 DAYS 4 TO 6 GRS BLK Z $630 90 DAYS 4 TO 6 GRS 4 BLK CLIV&MB W $225 60 DAYS 4 TO 6 GRS BLK CLIW WHITE $390 60 DAYS 4 TO 6 GRS NEAR GEM BOX LIST 60 DAYS -3 GR 2GR -12 +11 MBCL $182 75 DAYS / $180 60 DAYS 11-9 MBCL $112 60 DAYS 3 GRS SAWABLES $575 120 DAYS / $ 560 60 DAYS 2 GRS SAWABLES $398 60 DAYS -12+11 SAWABLES $298 60 DAYS -11+9 SAWBLES $225 60 DAYS LIGHT 2 $66 90 DAYS -5+3 LIGHT $70 90 DAYS -3 GR 2GR -12 +11 BLK ST LIGHT $215 90 DAYS -11+9 BLK ST LIGHT $121 60 DAYS -3GR 2 GR -12+11 MAC $245 60 DAYS -3 GR 2 GR -12+11 CHIPS $280 60 DAYS 11-9 CHIPS $175 60 DAYS -3 GR 2 GR -12+11 REJECTION $61 60 DAYS / $ 62.5 90 DAYS 11-9 REJECTION $42 90 DAYS 3 GR 2 GR -12+11 REJ NYURBA $58.5 60 DAYS