De Beers to hike prices

JOHANNESBURG – The world’s biggest diamond producer De Beers said it will increase rough diamond prices by less than two per cent at its sale starting today, the first price hike in eight months.

The increase is due to growth in consumer sales of polished diamond jewellery last year that is expected to continue in 2006, De Beers said in an e-mail in response to a query on Friday. “In line with the estimated 6-7 per cent growth achieved in 2005 in these markets and the current 2006 growth forecast of seven per cent, we are re-balancing our prices from the February sight, the overall effect of which will be an increase of under two per cent,” it said.The “sight” will be the second of 10 held each year when De Beers marketing arm, the Diamond Trading Company (DTC), sells rough diamonds to its specially chosen clients — “sightholders”.”We have carefully taken into account current market fundamentals and the medium to long-term view, which we see as positive,” DTC Sales Director Des Cavanagh said in the statement.De Beers, 45 per cent owned by mining group Anglo American Plc, increased prices of rough diamonds twice in 2005, in January and in June.Earlier this month, De Beers posted a 15 per cent rise in 2005 rough diamond sales to US$6,54 billion.Production rose four per cent to a new record of 49 million carats.-Nampa-Reuters”In line with the estimated 6-7 per cent growth achieved in 2005 in these markets and the current 2006 growth forecast of seven per cent, we are re-balancing our prices from the February sight, the overall effect of which will be an increase of under two per cent,” it said.The “sight” will be the second of 10 held each year when De Beers marketing arm, the Diamond Trading Company (DTC), sells rough diamonds to its specially chosen clients — “sightholders”.”We have carefully taken into account current market fundamentals and the medium to long-term view, which we see as positive,” DTC Sales Director Des Cavanagh said in the statement.De Beers, 45 per cent owned by mining group Anglo American Plc, increased prices of rough diamonds twice in 2005, in January and in June.Earlier this month, De Beers posted a 15 per cent rise in 2005 rough diamond sales to US$6,54 billion.Production rose four per cent to a new record of 49 million carats.-Nampa-Reuters