Demand for rough picks up at DTC sight 3

The third Diamond Trading Company (DTC) sight of the year held March 30-April 3 is estimated by market sources to have been double the size of the three previous sights as demand for rough rose. Although the value of goods sold was around $200 million, that is still only about 30 percent of the March 2008 sight. %5 DTC spokesperson Louise Prior told the media that there had been stronger demand for specific goods, although declined to elaborate, and overall a more positive mood at the sight. Sightholders said there was reasonable demand for most goods, and strong demand for stones giving polished sizes of 1-1.5 carats.

Prices, however, remain high compared to the rest of the rough market, according to some sightholders.%5 The pick-up in demand follows reports from the market suggesting a price rise of around 10 percent in February and March. Israeli diamond magnate Lev Leviev made similar remarks last week.

Diamond firms have slashed their purchases of rough goods since the fourth quarter of last year due to the slump in demand and tighter credit conditions from the banks. As a result, the DTC held three very small sights and said it will continue with this policy until there is a substantial upturn in the market.