De Beers has reduced rough diamond prices by 10%–15% at its most recent sight, marking the company’s first major price adjustment of the year. Bloomberg described the move as a "historically large reduction," diverging from De Beers’ typical approach of offering customers flexibility or the right to refuse goods rather than cutting prices outright.
Market analyst Paul Zimnisky attributed the price cuts to parent company Anglo American’s ongoing efforts to sell De Beers but questioned the timing. “The polished market was just starting to show signs of stabilizing, and sentiment was healing,” Zimnisky said. He expressed concern that the decision could undermine progress in stabilizing polished diamond prices and squeeze manufacturer margins.
An anonymous industry insider labelled the price reduction as “a sign of desperation” that could have far-reaching consequences. “This move diminishes the value of everyone’s inventory just ahead of the critical holiday season,” the source said. The insider also noted that while natural diamond prices have seen a gradual decline post-COVID-19, they have not dropped as precipitously as lab-grown diamond prices, and De Beers’ actions risk weakening the value proposition of natural diamonds.
Sources revealed that De Beers intends to enforce its 2021 contract rule requiring sightholders to purchase at least $15 million worth of goods annually. Failure to meet this threshold in 2024 will relegate sightholders to ad hoc purchases in 2025, with no guaranteed supply under "intentions to offer" (ITOs).
While De Beers has not officially commented on the price cuts or ITO process, spokesperson David Johnson acknowledged signs of stabilization in polished diamond prices and reduced midstream stocks. He described this as “a platform for greater equilibrium and growth as polishing operations prepare to reopen following the extended Diwali break.”
Engagements with sightholders about 2025 ITOs are scheduled for the coming weeks, with the company’s new sightholder contracts set to take effect in 2026. De Beers CEO Al Cook, speaking at a diamond conference in Antwerp, hinted at a strategic shift toward fewer but more closely aligned sightholders.
As the diamond industry grapples with the implications of De Beers’ decision, market participants are watching closely to assess the impact on polished diamond prices, manufacturer profitability, and the competitive positioning of natural diamonds versus lab-grown alternatives. With the holiday season on the horizon, the stakes are high for all players in the supply chain.
