SURAT: In what is seen as a boon for diamantaires in Surat, De Beers has expanded its forward-contracts programme, enabling its short-term auction customers to fix a price for rough diamonds up to five months ahead of the stones' delivery.
Industry sources said the diamond companies from Surat and Mumbai have been the regular participants in tender auctions of rough diamonds by De Beers. The companies regularly participating in auctions have been selected by the group for fixed-price forward contracts in India, Belgium and Israel.
De Beers had launched pilot programme in January, 2017. A total of 222 fixed-price forward contracts were sold during the pilot project, accounting for 10% of the revenue the auction business generated this year.
"The results from this pilot have been very encouraging and have validated our understanding of customer needs and the solution we have been testing meets those needs effectively," vice-president of De Beers Auction Sales Neil Ventura said.
From January, 2018, De Beers will offer its auction clients contracts with one to five-month forward deliveries.
India imports rough diamonds to the tune of over $18 billion per annum. While around 85% of the rough diamonds are imported in the country through the giant mining companies like De Beers, Alrosa, Rio Tinto etc., the rest comes from secondary market in Antwerp and Dubai.
Regional chairman of Gems and Jewellery Export Promotion Council (GJEPC) Dinesh Navadiya said, "The fixed forward contracts of rough diamonds by De Beers will help diamond companies to manage the future prices. If suppose a particular quality of rough diamond is priced at X value, the diamond company can lock it in the auction at the prices prevailing at that time and take the delivery within their stipulated contract period."
Industry sources said the diamond companies from Surat and Mumbai have been the regular participants in tender auctions of rough diamonds by De Beers. The companies regularly participating in auctions have been selected by the group for fixed-price forward contracts in India, Belgium and Israel.
De Beers had launched pilot programme in January, 2017. A total of 222 fixed-price forward contracts were sold during the pilot project, accounting for 10% of the revenue the auction business generated this year.
"The results from this pilot have been very encouraging and have validated our understanding of customer needs and the solution we have been testing meets those needs effectively," vice-president of De Beers Auction Sales Neil Ventura said.
From January, 2018, De Beers will offer its auction clients contracts with one to five-month forward deliveries.
India imports rough diamonds to the tune of over $18 billion per annum. While around 85% of the rough diamonds are imported in the country through the giant mining companies like De Beers, Alrosa, Rio Tinto etc., the rest comes from secondary market in Antwerp and Dubai.
Regional chairman of Gems and Jewellery Export Promotion Council (GJEPC) Dinesh Navadiya said, "The fixed forward contracts of rough diamonds by De Beers will help diamond companies to manage the future prices. If suppose a particular quality of rough diamond is priced at X value, the diamond company can lock it in the auction at the prices prevailing at that time and take the delivery within their stipulated contract period."
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