Two of the world’s leading diamond producers have reportedly raised prices of rough diamonds in January to start of the 2022 trading season.
According to various news reports, London-based mining company De Beers and Russian miner Alrosa have raised prices of rough diamonds by 8 and 10 per cent, respectively, based on diamond market trading results.
Industry sources who requested anonymity told Bloomberg that De Beers has raised prices by 5 to 8 per cent with a higher increase ranging between 15 to 20 per cent for “smaller, cheaper stones.”
The company, reputed to be the world’s second-largest diamond producer by volume, has raised prices of rough diamonds throughout 2021 as part of its recovery measures from losses incurred due to the closure of mining operations at the onset of COVID-19.
To date, De Beers has neither confirmed nor denied the alleged price hike.
Jeweller reported in August 2021 that the company had posted a “profit rebound” for the first six months of the year where revenue more than doubled compared to the same period in 2020.
The rebound, based on a statement from the company, was “driven by robust rough diamond demand as the midstream pulled through stocks in response to the recovery in consumer demand.”
In another report by Jeweller in October last year, De Beers announced its rough diamond production increased by 28 per cent to 9.2 million carats, driven by the sustained demand for rough diamonds to address the demand for polished diamond jewellery in the US and China.
Similarly, Alrosa has increased rough diamond prices by around 10 per cent amid a shortage in supply, according to a report from Rapaport News.
Anonymous sources dealing with the Russian miner claimed the price hikes were attributed to a “shortage of rough in the market. So, each manufacturer is chasing rough.”
High-quality stones reportedly went up by as much as 5 to 7 per cent, averaging between 8 to 10 per cent, while smaller, lower-quality stones increased by around 12 to 18 per cent, according to the source.
The reported increase was also driven by strong demand in the US for polished stones during the Christmas holiday.
In November 2021, Jeweller reported hat Alrosa expected to increase output for rough diamonds this year to address demand in key markets worldwide.
The company has lifted yield forecasts in 2021 and also adjusted its 2022 projections by 5 per cent or 1 million carats with the reopening of mine sites that were closed during the height of COVID-related lockdowns and restrictions.
De Beers and Alrosa are two of the biggest suppliers of rough diamonds worldwide.