Joshua Freedman, reporting for Rapaport, highlights the latest developments in De Beers’ ongoing price reductions, noting a 10% to 15% decrease for most rough diamond categories. The December sight marks the mining company’s attempt to address weak demand in the market.
However, manufacturers argue that the cuts fall short of restoring profitability. Freedman points out that production costs are still expected to exceed the value of polished diamonds, leaving many buyers reluctant to commit to purchases.
According to Freedman the adjustments help narrow the pricing gap between De Beers and the open market, where the company’s rough diamonds had been 20% to 25% more expensive than those sold through tenders and auctions. While De Beers declined to comment to Rapaport directly on the cuts, it noted some stabilization in polished diamond prices and declining inventory levels in retail and midstream sectors, suggesting a possible post-Diwali recovery.
Market insiders had anticipated significant price cuts in January 2025 but speculate that De Beers acted earlier to soften potential negative market sentiment from a larger adjustment. Despite the December reduction, uncertainty remains about further price adjustments in the new year.
De Beers also revised its buyback policies, now allowing customers to return up to 20% of larger diamonds while restoring a 10% allowance for smaller goods. Nevertheless, sightholders are calling for deeper price reductions, citing ongoing losses. «We‘ve already lost so much», a sightholder told Rapaport. «How much more can we lose?».
The price reductions reported by Rapaport inevitably raise the question on everyone’s mind: Will De Beers ultimately be sold in 2025? And if so, who will buy it?
