De Beers has reduced prices by an estimated average of 8 percent at its Diamond Trading ‎Company (DTC) sight this week. The sight had an estimated value of about $580 million and ‎no goods were left on the table. ‎

Sightholders noted that the price adjustments were implemented across the board with ‎larger declines of up to 17 percent for better-quality goods, while the drop was more ‎conservative for pique commercial-quality stones.

"It’s a step in the right direction,” one sightholder told Rapaport News. “There’s still room ‎for more of a correction but De Beers said they don’t have any intention of making more ‎adjustments.”‎

He explained that prior to this sight there was a 15 percent difference between the rough and ‎polished price movements, and that the gap has now narrowed to about 5 percent. Another ‎sightholder said that DTC is of the view that rough prices have now come in line with ‎polished, which have since stabilized. ‎

Louise Prior, the head of sightholder services and communications for DTC, said that ‎DTC had a four point plan for this sight to include price adjustments to reflect a fair return ‎on rough to polished in line with prevailing polished demand. ‎

‎“The sight seems to have been well received by all and shows our confidence in the ‎market for ‎the rest of year,” Prior said. “Sightholders have commented on the value in ‎our boxes and the ‎mood is much more upbeat this sight than previously.”‎

Other points DTC stressed were De Beers strategy to mine according to demand, its ‎dynamic distribution system and the launch of a fourth quarter U.S. Forevermark ‎campaign. ‎

The sight followed the India International Jewellery Show (IIJS), which took place earlier this week. Reports from the show indicated that ‎prices were steady for low color, SI and lower-clarity stones, while demand for better-quality stones ‎remained weak among Indian buyers. Some noted a slight uptick in inquiries from Chinese ‎diamond buyers in recent weeks and many are hoping that will translate into improved buying activity ‎at the Hong Kong show in late September. One Indian sightholder based in Hong Kong ‎noted, however, that Chinese buyers are expected to hold back from buying as long as the market ‎is cautious.‎

Most sightholders who spoke with Rapaport News welcomed the DTC price adjustments ‎and hope it will ease liquidity challenges and profit margins in the manufacturing sector. The move came ‎after sightholders rejected more than 20 percent of their DTC allocations at the previous two ‎sights. Sightholders took all the goods that were offered this week but some noted that ‎DTC reduced its allocations as De Beers faces a slight shortfall in production this year. ‎

The company has focused on waste mining and maintenance since the fourth quarter of ‎‎2012 and saw production fall 12 percent year on year to 13.4 million carats in the first half ‎of 2012. One month's worth of production was scrapped at its flagship Jwaneng mine in Botswana after closing operations due to a fatality at the end of June. ‎

While the July and August DTC have traditionally been the largest sights of the year as ‎sightholders buy goods to manufacture in time for various holidays, Rapaport ‎estimates that this sight was 30 percent below that of one year ago. The July sight estimate was about 60 percent below 2011. ‎

DTC sales have declined by approximately 23 percent year on year to about $4 billion ‎through the seven sights that have taken place so far. ‎the August sight was the first to present goods completely sorted in Botswana after DTC transferred its aggregation division to Gaborone earlier in the month.