Surprise 3-5% Price Hikes at DTC Sight 9

Sightholders were surprised to discover that the Diamond Trading Company (DTC) had raised prices, by 3 to 5 percent, on many rough diamond boxes at the Sight this week. In the past, the DTC released such information publicly so that Sightholders’ clients would be aware of this. The Sightholders were also told about it the week before the Sight. This was not the case this week.

The hike was mostly in boxes of bigger goods, 3 to 8, for instance; a couple of Sightholders also said it was seen in white goods. The reason for the hike could be high premiums in the secondary market, though one insider noted that he didn’t see a direct correlation between the raised prices on the boxes and the premiums.

Currently, premiums on many DTC boxes are around 10 percent.

The Sight also offered many ex-plan goods (extra goods not included in the regular supply plan - the ITO). One Sightholder noted that the DTC is offloading many goods at an inopportune time – too late for Christmas and just ahead of Diwali.

The Sight is estimated at about $550 million.

Finally, there was some talk that this Sight would include goods from De Beers’ first Canadian mine, Snap Lake, which still being developed. It is not clear if indeed such goods were included.