De Beers Group has recently announced that its Auction Sales business is to transition Fixed-Price Forward Contracts to core business status. This, following the success of the pilot programme launched in January 2017, according to De Beers.
Fixed-Price Forward Contracts, the company explains, “allow customers to secure guaranteed access to bespoke future supply contracts, with certainty over the price to be paid when each contract reaches maturity”. The pilot, De Beers says, “ […] has experienced increased customer demand for its fixed price mechanism, especially from businesses in Belgium, India and Israel”. De Beers sold a total of 222 Fixed-Price Forward Contracts during the pilot, and total forward contract sales accounted for 10% of Auction Sales’ revenues in 2017.
Starting January 2018, the miner will launch “a wider range of products for one, two, three, four and five-month forward deliveries”.
