Following the success of the Fixed-Price Forward Contracts pilot programme, De Beers announced that it will be accorded core business status from January 1, 2018, with the launch of products for one, two, three, four and five-month forward deliveries to suit varied customer needs.

Since the launch of the pilot earlier this year, De Beers said it sold a total of 222 Fixed-Price Forward Contracts, with total forward contract sales accounting for 10 per cent of Auction Sales’ revenues in 2017.

While the product was originally conceptualised in response to customer demand for short-term consistency of supply, there has been strong customer demand for its fixed price mechanism, especially from businesses in Belgium, India and Israel.

Fixed-Price Forward Contracts offer the opportunity for Auction Sales customers to secure guaranteed access to bespoke future supply contracts, with certainty over the price to be paid when each contract reaches maturity.

Neil Ventura, Executive Vice-President, Auction Sales, said: “The results from this pilot have been very encouraging, and have validated our understanding of customer needs and that the solution we have been testing meets those needs effectively.”

He added that having made investments so as to be able to offer such contracts, De Beers will now create “a broader range of highly consistent products over longer contract maturities, with flexible supply options up to five months into the future”.