The world's largest diamond producer is said to have cut prices on its first sales this year, in a bid to stimulate a flagging market.
DeBeers, majority owned by Anglo American AAL,
The company cut prices by 10% in its first diamond sale, Bloomberg reported on Tuesday, citing sources. Some of its larger stones have seen a 25% cut.
The global economic downturn, the increasing popularity of lab-grown diamonds, and a decline in marriages and engagements in the wake of the pandemic have affected demand for gemstones in recent years.
DeBeers announced in December that it expects to sell two-thirds fewer diamonds in the final sales cycles of 2023 than it did in the same period last year, aiming to reduce market glut.
The company and other gem sellers divide the year into a series of five-week sales cycles that correspond to the amount of time manufacturers take to cut and polish the rough diamonds they buy. DeBeers had previously begun limiting sales in its eighth sales cycle last year as demand declined throughout 2023.
Last year, De Beers tried to stimulate some demand by resurfacing a newer version of its classic “Diamonds Are Forever” advertising campaign in the US and China.
MarketWatch has reached out to DeBeers for comment.
