De Beers cuts diamond prices for the first time in over a year

De Beers last cut prices in December 2024, and the latest drop comes at a pivotal time for the company that invented the modern diamond industry. Photo by ROSLAN RAHMAN/AFP via Getty Images/Postmedia files

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De Beers cut its official diamond prices for the first time in more than a year, according to people familiar with the matter, ending its attempts to support the market in the face of slumping demand.

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The diamond industry has been beset by one of the deepest and most prolonged crises in modern history amid a pullback in Chinese luxury spending and rising popularity of synthetic stones. United States tariffs on India — the world’s largest diamond exporter — have added even more pain.

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De Beers typically tries to avoid price cuts because its outsize influence on the market means such a move can hit overall sentiment. Instead, the company has been selling discounted stones in secret sales, while official prices remained about 25 per cent higher than the going rate for some categories.

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On Monday, it sought to realign its position at the first regular sale of the year. The company made deep cuts in the price of rough diamonds bigger than three quarters of a carat, according to people familiar with the situation who asked not to be identified as the information is private.

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A De Beers spokesperson declined to comment.

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At its normal sales, De Beers sets prices and tells customers — known in the industry as “sightholders” — how much they are expected to purchase. While buyers can refuse, doing so can jeopardize their access to supplies in the future. The company sells its diamonds in boxes, sorted into different categories and sizes.

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The scale of Monday’s price cuts was not immediately clear. The company introduced a policy of one-line invoicing at the sale — rather than giving the price for each individual box of diamonds, it invoices a single total — making price cuts hard to determine. It also changed the assortment of some boxes, making like-for-like comparisons hard, the people said.

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De Beers last cut prices in December 2024, and the latest drop comes at a pivotal time for the company that invented the modern diamond industry. The market was finally showing some signs of stabilizing before U.S. President Donald Trump’s trade war sparked fresh turmoil last year.

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In August, Trump’s placed 50 per cent tariffs on India, where about 90 per cent of diamonds are either traded, cut or polished. The U.S. is by far the world’s biggest diamond consumer.

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For De Beers’ owner, Anglo American PLC, the timing couldn’t be worse. The miner is looking to exit the business as part of a radical restructuring after fending off a US$49 billion bid from BHP Group in 2024.

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