Early reports are that De Beers stuck to restricted supply of rough diamonds at the December sight this past week, according to polishedprices. Alrosa has been following the same line, although some boxes were reportedly slightly more expensive but better assorted at the last sale. Meanwhile, RBC Capital Markets said the difficult market conditions for smaller goods were likely to continue for some time. “That Petra held back sales suggests pressure on cheap goods will continue for a while,” RBC said. This underlines De Beers' strategy to boost Jwaneng output rather than Orapa; the latter mines lower-quality stones. Rio is deferring output at Argyle for the same reason,” it said. Polishedprices also reports that, "Dealers said polished trading activity increased since the Diwali break. With virtually no manufacturing output in India during Diwali, polished supply coming on to the market has been significantly lower, leading to shortages in certain ranges. However, the outlook remains cautious."
Meanwhile, the overall polishedprices index, continued to weaken throughout the week, to record its lowest value since May 2010. The main polishedprices index opened down 0.7% over the previous Monday at 122.4 points. The overall index is currently 9.8% below its level this time last year, and has lost 9.1% since the start of 2015. One carat diamonds continued last week’s weakness with again all categories in negative territory. 0.5 carat ranges fared well, however, with Fine, commercial and Mixed ranges gaining 3.7%, 1.6% and 0.3% respectively.