As the diamond industry continues to face low demand and high inventory levels, Botswana’s state-owned rough diamond trader, Okavango Diamond Company (ODC), has once again called off one of its scheduled sales.
This marks the second consecutive auction cancellation this year, following a similar decision in November due to weak market conditions.
ODC, which holds ten auctions annually to sell its 25% allocation from Debswana, had planned rough viewings from December 3rd to 13th, followed by a spot auction on December 16th.
However, both events have now been canceled.
In contrast, ODC will proceed with its October sale, scheduled for October 7th, following the viewing of available stones.
A notice on ODC’s website states that auction dates will be confirmed “on a sale-by-sale basis” in response to “current market conditions.”
The company made similar postponements last year when the diamond trade was also struggling with declining demand.
The diamond market has been facing challenges, with several producers reducing their sales to mitigate the oversupply issue in the midstream.
Notably, De Beers canceled its August sight, merging it with its October sale to create a combined September trading session.
ODC is entitled to sell 25% of the rough diamonds mined by Debswana, a joint venture between the Botswana government and De Beers.
Under the new sales agreement between De Beers and Botswana, this allocation is set to rise to 30%, and eventually up to 50%.
Currently, receives 6 million carats, which will increase to 7 million carats in the future as part of this evolving arrangement.
