Demand for Uncut Diamonds High, Prices Hiked 5.5%

JOHANNESBURG, South Africa —  De Beers Consolidated Mines Ltd., the world’s biggest diamond producer, announced today that it will raise prices for uncut stones by 5.5% next Monday to cash in on strong demand.

The South African mining firm controls about 80% of world trade in rough, or uncut, diamonds through its London-based Central Selling Organization.

It noted exports were running at record levels, particularly from manufacturing centers like Israel and India, for polished stones of up to 1 carat in weight.

“The market shows strong, sustained and sustainable demand,” a De Beers spokesman said. “It’s not a flash in the pan.”

This had led to premiums being charged on stones of up to 1 carat sold in the open market outside CSO control, which influenced the organization’s decision to raise its prices.