De Beers Allowing 100% Deferrals at November Sight

Finance and Trade
26/10/2015 13:58

In what is a first for the firm, De Beers will allow its sightholders to turn down their entire November allocations until December in recognition of the intense pressure under which diamond manufacturers are working die to the soft condition of the market. “Further to discussions with several of you following recent cutting center visits, we are writing to provide an overview of some of the additional flexibility we will be putting in place for sights 9 and 10,” the company said in a note to sightholders obtained by Rapaport News. “We understand that many businesses' short-term demand requirements may well have seen some significant changes, so we are looking to find the best ways to be flexible in meeting your needs.”

Last month, sightholders refused about half of their allocated supply, with the sight having an estimated value of just $200 million. This led to rumors that De Beers might cancel its next two sights altogether, with this latest move being the closest thing to full cancellation. De Beers' rough sales have slumped about 38 percent on the year so far in 2015, according to Rapaport estimates.