Okavango Pauses Sales in Latest Sign of Rough Slowdown

Okavango Diamond Company (ODC), Botswana’s state-owned rough trader, has canceled its November sale amid weak market conditions, the trader said Thursday.

The decision comes during a time of high rough and polished inventories due to slow demand in the US and China and competition from lab-grown diamonds. India recently began a two-month voluntary freeze on rough imports to reduce the glut of goods.

“For the first time, we have had to build up inventory as we do not want to just irresponsibly release goods into a market which is already oversupplied,” said ODC managing director Mmetla Masire, according to Reuters, which first reported the news. “For now, we have stopped the auctions, [and] we will decide on the December auction.”

Okavango has the right to sell 25% of rough from Debswana, the joint venture between the Botswana government and De Beers.

Last month, Alrosa said it was pausing sales, while De Beers has allowed sightholders to refuse all goods until the end of the year and suspended online auctions.

Image: Rough diamonds. (Okavango Diamond Company)