The company introduced the forward contract sales (FCS) program, which is offered through its auction sales business, in response to feedback indicating rough diamond buyers were either seeking to secure short-term supply of goods – something spot auction sales could not provide – or to complement existing long-term supply contracts.
Unlike spot auction events, the FCS model allows buyers to engage in forward planning. Customers are able to bid on future contracts as well as the volume of diamonds required over a given period.
According to Neil Ventura, De Beers’ executive vice president of auction sales, the launch of the 2014 program had been well received with more than 300 contracts sold and many buyers willing to pay a premium for short-term supply.
Ventura added that the FCS event scheduled to take place in March this year would feature a number of improvements based on customer feedback.
“A wider range of products will be made available including some of our +2-carat products for the first time,” he said.
“Furthermore, the one-off set of FCS auctions will provide our customers with a highly convenient way to secure the products they require for delivery in any one of the four cycles between March and July, or any combination of these delivery periods that suit their needs.”
The company advised that buyers with a track record of demonstrated demand would be contacted about the sale in due course, while those new to auction sales or yet to participate in FCS could find out more information via their account managers.
De Beers sells 10 per cent of rough diamond supply through its online auction sales business; the remaining is traded through its sightholder sales business.
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De Beers increases accessibility to its rough diamond