A new report says the collapse in rough diamond prices has prompted the world's largest producer to implement broad price cuts.
Bloomberg reports that De Beers' final sale of rough diamond stones on the secondary market was led by a 10% to 15% price cut amid a slumping market pressured by the proliferation of artificial diamonds and sliding demand across the West and China.
Yet on Monday, the company capitulated on that position at its final sale of the year. De Beers cut prices by 10% to 15% for most of the goods it sells, according to people familiar with the situation. That's the first major price cut since the start of the year and a historically large reduction .-BBG
Price cuts at Anglo American's De Beers come as the Diamond Standard Index, which dates back to early 2022, has plunged to record low levels .
Here's more from the report:
De Beers wields considerable power in the rough-diamond market. It holds 10 sales each year in which the buyers — known as sightholders — generally have to accept the price and the quantities offered.
Still, even after the steep cut in prices today , the company's stones are still more expensive than the going rate in the secondary market, the people said, asking not to be identified as the matter is private. The company also removed some of the flexibility it had offered at previous sales.
De Beers typically reserves aggressive price cuts as a last resort . While it keeps pricing secret, the across-the-board cut this month is hefty.
So much for the diamond giant putting a floor under prices...
By Zerohedge.com
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