De Beers says it is offering greater availability of forward contracts in the first half of the year and an increase in range and quantity of products through its auction sales business.
The changes to the program, which was first launched last year, came as a result of customer demand.
At a single forward contract sale (FCS) in March, customers will be able to bid for future supply of a wider range of products (i.e. from the two-carat-plus, grainers, and smalls categories), which are available in multiple-unit volumes and over one, two, three, and four-cycle contract durations.
“FCS got off to a successful start in 2014 with over 300 contracts sold and customers demonstrating a willingness to pay a premium for short-term security of supply,” said Neil Ventura, De Beers’ executive vice-president of auction sales.
“This year, in response to customer feedback, a wider range of products will be made available including some of our [two-carat-plus] products for the first time. 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.”
FCS was launched in 2014 in response to feedback from customers seeking either to lock in short-term security of supply that spot sales cannot provide, or to complement their existing long-term supply contracts. They allow buyers to bid on all future contracts offered, or any combination, and to bid for the volumes of products they require in each contract. This provides buyers the flexibility to construct their own bespoke supply contracts.
