De Beers Cuts Diamond Prices Sharply as Industry Crisis Forces Market Reset
De Beers Reduces Diamond Prices in Major Shift as Weak Demand and Lab-Grown Stones Pressure Market
De Beers has introduced some of its largest official diamond price reductions in years, marking a significant shift in strategy as the company responds to prolonged weakness in the global diamond market.
The price cuts come during the company’s first sales cycle after reducing the number of its selected diamond buyers, known as sightholders.
The move is part of a broader effort to strengthen relationships with key customers amid challenging market conditions.
The diamond industry has faced sustained pressure from weaker luxury demand in China, increased competition from lab-grown diamonds and declining consumer confidence. These factors have contributed to one of the sector’s longest downturns in recent years.
De Beers has traditionally avoided official price reductions because of its influence on global diamond pricing. Instead, the company previously relied on discounted sales and other measures while maintaining higher official prices for some categories.
However, recent changes indicate a shift toward aligning prices more closely with market conditions. Industry participants said De Beers’ prices had previously been above secondary market levels by between 5% and 50%, depending on diamond category.
The exact scale of the latest reductions remains unclear, partly because De Beers recently introduced a single-line invoicing system that makes direct price comparisons more difficult.
Changes to diamond assortments have also complicated comparisons between sales periods.
Restructuring Buyer Network
The latest price changes follow De Beers’ decision to reduce its global network of sightholders from around 70 buyers to between 45 and 50.
The company said the adjustment would allow it to work more closely with a smaller group of strategic customers.
The company has also faced increased competition from other diamond producers selling stones at prevailing market prices, while broader economic uncertainty, trade restrictions and geopolitical tensions have added further pressure to the sector.
The changes come as De Beers undergoes a period of uncertainty. Its parent company, Anglo American, is reviewing options for the diamond business following several years of weaker performance.
The price reductions reflect the wider challenges facing the diamond industry as producers, retailers and investors adjust to changing consumer demand and a rapidly evolving market environment.
