De Deers' December site is estimated at $ 580 million, while the prices for goods and the cost of the boxes were relatively stable, Rapaport reports. The revenue figure from the December site is the highest since the first quarter of the year, as sightholders bought goods left over from the November site, and also intended to replenish stocks for their manufacturing enterprises. After the December site, the indicators of trade also improved in the secondary market.
A recent site also featured an additional product delivered in excess of the sightholder's applications submitted earlier.
Sightholders note that the goods purchased by them will allow them to maintain their activities for a fairly long period - until the next site, which will begin January 20, 2014.
"The buyers do not have enough diamonds, and they realized that they will not have a new opportunity to purchase the De Beers product before the first week of February - after the next site. So last week they bought more goods than usual, "said one of the sightholders from Mumbai. "The companies increased diamond production after the Diwali holiday, and there is not enough rough in the market."
Some of the interviewed participants suggested that tightening the rules of bank lending, which will come into force in 2014, also affected sightholders who bought more goods in December, while they have access to additional financing. ABN Amro Bank confirmed to Rapaport News agency that from January 1, 2014, it intends to reduce financing of purchases of rough diamonds from 100% to 70%, and therefore manufacturers will have to pay 30% of their purchases from their own funds.
David Johnson, who heads the De Beers department for communications with manufacturing companies, said that the increase in demand for rough diamonds in December was due to several factors, including the timing of the next site, the relatively low level of rough diamonds from diamond manufacturers, an increase in production activity after the Diwali holiday and an increase in demand for jewelry with diamonds in the fourth quarter of 2013.