DIAMOND MARKET OVERVIEW Sentiment in the polished market was mixed over the past week. Some traders said demand from US retailers ahead of the all-important end of year sales season was below expectations. Others said they expected a good end of year sales season. Thursday’s end to the US Government shutdown removed fears that a prolonged shutdown would negatively impact consumer spending in the largest market for polished sales. However, the initial euphoria that a deal has been struck is diluted by the recognition that the underlying problem has not been solved, and in effect the issues has simply been kicked down the road. In India, local traders are hoping to see a lift in sales as the Diwali festival approaches on November 3. Meanwhile, the main PolishedPrices index ended the week lower, opening at 139.96 on Friday, from Monday’s opening at 140.55 points. ROUGH MARKET Sightholders gave a bleak assessment of the market over the past week, marked by declining rough prices and a squeeze in liquidity. Some said they expected to see further deferrals at the next DTC sight in November if the current market conditions prevail. The September sight reportedly saw around 20% of DTC goods unsold, while at the October sight around 15% was said to have been left on the table. The results of the first full tender by the Botswana Okavango Trading Company have not been officially published in the same way that the trial tender results were. It is understood that the results were much closer to the DTC price compared to those for the trial tender, where prices were 51% higher than the reserve prices, which it was understood reflected DTC prices. CORPORATE AND EVENTS OAO Alrosa pledged to pay at least 35 percent of net income as dividends as the world’s largest diamond producer seeks to attract investors to a share sale valuing it at as much as 280 billion rubles ($8.7 billion), Bloomberg reported. Alrosa set the price range for its planned share sale at 35 rubles to 38 rubles apiece, with the final level to be announced on Oct. 28, the diamond miner said today in a statement. The Russian government and the eastern Republic of Sakha (Yakutia), where the monopoly’s main mines are located, are selling a combined 14 percent stake, while Alrosa will offer about 2 percent in treasury stock, according to the Bloomberg report. Read more here: bloomberg/news/2013-10-14/alrosa-offers-35-dividend-drawcard-in-diamond-share-sale.html? Rio Tintos share of production in Zimbabwean mine Murowa Diamonds has slid 24% in the third quarter of 2013, compared to the same period last year, to 70 000 carats, the group said, The Zimbabwe Independent reported. In its 2013 third quarter production update Rio Tinto, which has listings on the London, New York and Australian stock exchanges said the companys share of production at the Zvishavane mine had grown by 1% in the first nine months of the year to 217 000 carats, from 215 000 carats in the same period in 2012, according to the report. Read mo
Posted on: Mon, 21 Oct 2013 18:18:33 +0000
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