DTC spokesperson Louise Prior confirmed a low single-digit price hike, while others noted an increase of approximately 5 percent on certain boxes which are in higher demand. Those boxes included stars and pointer sizes, coloured goods and the more commercial Indian items. A large quantity of ex-plan goods that were not included in the intentions to offer (ITO) were supplied at the London sight.
One industry professional noted that most sightholders accepted the price hike as it had followed similar increases by other major mining companies and since DTC boxes have been trading at high premiums in the secondary market. The effect is that DTC goods are now selling at an estimated average premium of about 4 percent.
He noted, however, that the increase was difficult news for sightholders as their margins are being squeezed further. "It's a difficult time at the moment because it's not easy to profit on manufacturing and it's becoming harder for dealers to sell the boxes at these prices," he added.
