Prices Lower Due to Market Weakness
Petra Diamonds, a London-listed gemstone miner, has announced that it has moved up the sales of its Tender 2 ahead of a two-month moratorium on diamond imports to India. The company reported that the prices achieved in this tender were approximately 16% to 18% lower compared to the first tender.
In total, Petra Diamonds sold 344,554 carats for $30.2 million, with an average price of $88 per carat. The company attributed these lower prices to the current market weakness. However, it remains optimistic about the medium to long term, expecting prices to improve due to the structural supply deficit.
The remaining 25% of Tender 2's volume is set to be sold by October 11th, just before the Indian import moratorium begins on October 15th.
Petra Diamonds highlighted that major producers' efforts to limit supply and the Indian moratorium are anticipated to bring much-needed stability and support to the market, consequently influencing prices positively.
As of 0707 GMT, shares of Petra Diamonds remained unchanged at 67 pence.