- Write by:
-
Wednesday, June 8, 2022 - 13:06:46
-
922 Visit
-
Print
Mining News Pro - De Beers, the world’s top diamond producer by value, has once again increased the price of its smaller stones as sanctions on Alrosa (MCX: ALRS), its Russian rival, have worsened a global shortage caused by two years of covid-related shutdowns.
The Anglo American unit had hiked prices by about 8% at its first sale this year, with the sharpest increases of up to 20% affecting small-scale roughs, as demand reached pre-pandemic levels.
Prices for these diamonds, which usually end up clustered around the solitaire stone in a ring, have soared since early April, when Alrosa was targeted by US sanctions related to Russia’s invasion of Ukraine.
Diamonds are one of Russia’s top ten non-energy exports by value, with shipments in 2021 totalling over $4.5 billion, and its state-owned diamond producer is responsible for about a third of global supply.
Unlike Alrosa, De Beers doesn’t produce much of diamonds used in lower-end jewellery usually found a chain stores such as Costco or Walmart – which is creating increasing shortages as Alrosa’s ability to supply the market remains uncertain.
People familiar with the matter told Bloomberg that De Beers applied a 5% to 7% price increase this week in Botswana, where the company holds 10 sales each year in events known as sights.
Around 60 handpicked customers — known as sightholders — are given a black and yellow box each time. These contain plastic bags filled with stones, with the number of boxes and quality of diamonds depending on what the buyer and De Beers had agreed to in an annual allocation.
The miner increased the price of its rough diamonds throughout much of 2021 as it sought to recover from the first year of the pandemic when the industry came to a near halt.
The strategy, which applied to stones bigger than 1 carat, granted De Beers a steady recovery during the year, with prices gaining 23% in just over a year, parent company Anglo American said in a December presentation.
De Beers now only carries working inventory stocks and its mines are running at full tilt. There is little chance of material increases in supply before 2024, when a $2 billion underground expansion of its Venetia mine in South Africa is expected to be completed.
The diamond jewelry industry is going into the year with diamond supply at historically low levels, estimated by Bain & Company at 29 million carats in 2021. “Upstream inventories declined ~40%, driven by high demand and slow production recovery, and are near the minimal technical level,” the report stated.
Short Link:
https://www.miningnews.ir/En/News/621469
London-based Savannah Resources will if necessary ask Portugal’s government to authorize compulsory land acquisitions ...
Botswana President Mokgweetsi Masisi vowed to protect the country’s interests, including its 15% stake in diamond giant ...
Newmont Corp. has no plans to expedite a decision on its $2.5 billion Yanacocha Sulfides project, dashing the Peruvian ...
Imports of iron ore by China, the world’s biggest buyer, in 2024 are expected to be around 1.17 to 1.18 billion metric ...
First Quantum Minerals said on Monday it is looking forward to talks with Panama’s new government to find a resolution ...
BHP has put South Africa and its mining sector on the spot. The $140 billion Australian group’s ambitious swoop on rival ...
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
China’s Tianqi Lithium said on Thursday it has formally requested that a proposed joint venture between lithium company ...
No comments have been posted yet ...