Diamond manufacturers express disappointment over De Beers’ recent price reductions on smaller rough diamonds, saying that the cuts “are insufficient to help their profitability,” according to a report by Rapaport quoted by Rough & Polished.
According to the original report, which relies on unnamed sources, De Beers lowered prices by 4% to 6% for 0.75-carat diamonds and smaller gems at its latest Sight. Prices for 1 to 1.5 carat gems reportedly fell by approximately 4%, while prices for 5 to 10-carat rough diamonds saw a slight increase. However, this increase is partly attributed to adjustments in assortments.
A sightholder shared that manufacturers who bought De Beers products in February are finding that the final polished product, which typically takes six to eight weeks to produce, is selling at prices that either result in a loss or just break even.
The gap between De Beers’ prices and those in the external market has widened, prompting the company to make this partial adjustment. “Had they not reduced prices, there would have been some refusals,” a sightholder said. “This will help them maintain sales volume.”
In other news related to De Beers, Al Cook, CEO of De Beers Group, highlighted China’s crucial role in the diamond jewelry market during an interview with the Chinese edition of the Financial Times on a recent visit to the country, according to IDEX Online.
Cook noted that China’s natural diamond market has witnessed substantial growth, surging from less than $1 billion in 2000 to over $10 billion in 2014. De Beers currently operates five boutiques in Shanghai and an additional 20 across China. Highlighting the strategic significance of China, Cook remarked that the opening of the first store in 2011 positioned De Beers not only as a diamond miner but also as a supplier in the eyes of Chinese consumers.
