Rapaport News has reported that the price cuts range from 5 per cent to 15 per cent in diamonds 0.75 carats and larger, with an emphasis on two-carat diamonds.
“De Beers has focused its adjustments on the lower-quality items for which demand has been especially slow, the sources said on condition of anonymity. Polished sales in SI to I2 clarities have slumped this year due to the overall weakness of US retail — the main market for this range — as well as competition from lab-created diamonds,” the report states.
“The company also maintained its policy of allowing 30 per cent buybacks for certain low-performing items, the industry sources said. Buybacks let sightholders sell a proportion of the rough they’ve purchased back to De Beers, allowing them to offload the stones that will generate the least profit. The limit is usually 10 per cent.”
Sales at De Beers’ latest cycle reached $US450 million ($AU673.1 million), a 32 per cent decline from the $US657 million ($AU982.7 million) generated in 2022.
US market struggling
According to the latest research from Tenoris, jewellery and diamond sales decreased 4.6 per cent year-by-year in June in the US market.
The combined value of jewellery and diamond sales declined by 11.2 per cent. In the first half, unit sales have decreased by 5.9 per cent.
“Natural diamond sales are on an ongoing downward trend. Year over year, unit sales fell 23.8 per cent. By total value, sales fell 20.9 per cent versus June 2022,” writes Edahn Golan.
“In the first six months of 2023, natural diamond sales were slashed 21 per cent by value and volume.
“It’s not surprising that diamond sales have been declining in recent months after an exceptional post-COVID run.”
Retailer margins are also reportedly shrinking, with an average of 35.2 per cent in June (a 4.2 per cent decline on a year-by-year comparison).
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Diamond sales slump for De Beers
Weakened demand impacts De Beers sales