Petra says diamond price trends picking up

13th Dec 2022 10:23

(Sharecast News) - Petra Diamonds said on Tuesday that it achieved $42.3m in sales in its third tender for FY23, with 305,366 carats sold.

Chief executive Richard Duffy said this represents a 2.2% rise in like-for-like prices versus the second tender of the year, reversing the downward trend observed in the previous two tenders.

"Although it is still too early to speculate on whether rough diamond prices have bottomed out, we are very satisfied with the overall result," he said.

He said prices in the 2 carat to 10ct size ranges rose, in contrast to the recent negative trends, partly due to improving expectations for the current festive season and potentially reflecting signs of a further easing of Covid curbs in China. This more than offset softer pricing in the 0.75ct to 2ct ranges.

"We continue to expect a supportive diamond market in the medium to longer term as a result of the structural supply deficit and see current levels of demand continuing into the New Year, albeit with the potential for further upside from any easing of lockdown restrictions in China," Duffy said.