De Beers, the world's largest diamond producer, has slashed prices by 10% to 15% at its final sale of the year, marking a significant strategic shift as the global diamond market grapples with one of its deepest slumps in decades.
According to sources familiar with the matter, the price cuts come after months of the company attempting to hold prices steady, even as rough diamond prices in secondary markets steadily dropped throughout the year, as reported by Bloomberg news. Monday's reduction is the most substantial adjustment De Beers has made since the beginning of 2023.
The diamond market has faced persistent challenges, starting with a post-pandemic slowdown in luxury spending. Inflationary pressures further dampened consumer demand, while the collapse of China's luxury sector dealt another blow to the industry. The rise of lab-grown diamonds has also undercut demand for natural stones, putting additional pressure on prices.
Until now, De Beers had resisted price reductions, offering its buyers, known as sightholders, the flexibility to refuse goods rather than lowering prices. The company also reduced its number of sightholders for future years as part of a broader restructuring. Last week, De Beers confirmed that the number of sightholders would be reduced in 2026 to build "partnerships that create value."
The company, a unit of Anglo American, has considerable influence in the rough diamond market through its 10 annual sales, where buyers are generally required to accept the price and quantity of stones offered. However, this week's decision to cut prices suggests the company is acknowledging the sustained weakness in demand.
A spokesperson for De Beers declined to comment on the price reductions. However, Bloomberg reported that "De Beers cut prices by 10% to 15% for most of the goods it sells," citing anonymous insiders.
Monday's decision comes at a challenging time for De Beers' parent company, Anglo American, which has announced plans to sell its diamond business as part of a sweeping corporate restructuring. Earlier this year, Anglo successfully fended off a $49 billion takeover bid from BHP Group, but speculation remains high over its future ownership.
Adding to the uncertainty, November's diamond sale by De Beers reportedly generated only $130 million-well below the 2023 average of $360 million per sale. This underlines the extent of the market slowdown, even as polished diamond prices have shown tentative signs of recovery.
