De Beers kept approximate prices steady in the first cycle of the year, following steep drops in December. It allowed for 20% buybacks on all items, allowing sightholders to sell their least profitable stones back to the corporation. Demand was modest, and the sales value was predicted to be low.
The question on sightholders’ lips was what will happen next. One of the primary causes for limited sales was De Beers‘ exorbitant prices. The miner’s rough remains far more expensive than the tender and auction markets.
The company’s 10% to 15% price increase in December helped to close the gap, but only somewhat. Russian rival Alrosa has now reached comparable price levels, following a 10% decrease in December and another of 7% to 8% in January, according to market insiders.