REPORT: DE BEERS SLASHES DIAMOND PRICES BY 5% IN NOVEMBER
According to reports, quoted in Mining Weekly, De Beers has cut its rough diamond prices by about 5% at its November sale in what is seen as another step to deal with the challenges in the diamond industry.
According to the report, the slash in prices “is aimed at helping improve profits for the middlemen of the diamond industry, a group of traders and polishers that buy rough gems from De Beers”, many of whom “are running on wafer-thin profit margins because of low prices and an oversupply of polished gems”.
Edward Sterck, an analyst at BMO Capital Markets, who is quoted in the piece, commented: “De Beers is a price setter and has not made any price cuts thus far, despite the open market price for rough diamonds falling by about 9% year-to-date. The most important market participant finally taking action after holding out for so long feels like a fairly typical indication that things may be about to improve”.