DTC Raising Rough Prices by “Under 2%”
February 15, 06
De Beers' marketing arm, the Diamond Trading Company (DTC) announced today that it will increase the price of rough by under 2 percent at the next Sight, due to be held from February 23 to 24. Des Cavanagh, DTC sales director, has written to Sightholders announcing what has been called a “price rebalancing”.
“It is important for the DTC to review its box prices on a frequent basis in order to align itself with the changing diamond market. This is intrinsically linked to the performance of the polished demand in the key consumer markets,” Cavanagh wrote.
“In line with the estimated 6-7 percent growth achieved in 2005 in these markets and the current 2006 growth forecast of 7 percent, we are re-balancing our prices from the February Sight, the overall effect of which will be an increase of under 2 percent. We have carefully taken into account current market fundamentals and the medium to long-term view, which we see as positive.
“While 2006 has undoubtedly started with its challenges, we remain confident that the fundamentals of our business remain firm and that there will be opportunities for achieving real growth this year.”