De Beers slashed rough diamond pricing by an average of 10 to 15% at this week's sight to promote sales and bring its rates in line with the rest of the market, according to news reports.
Rapaport quoted unnamed sources as saying that the miner reduced prices by five to 10% for rough under 0.75 carats but made no or little decreases for the smallest items that generate melee.
The prices of rough weighing 0.75 to 2 carats decreased by an average of 10 to 15%; similarly, the cost of 2-carat and larger items fell by roughly 15%.
Particularly, makeables, which consist of rough stones weighing 2 to 4 carats and used in the production of SI2 to I2 diamonds, decreased more significantly, by an estimated 20 to 25%.
Sightholders noted that this represents the effect lab-grown competition has had on mid-market US demand over the past year.
However, the reductions were said to be insufficient since De Beers' pricing remained higher than that of external auctions and tenders and was also prohibitively expensive for many businesses to generate a profit.
The sources anticipated that despite the price cut, demand at the location would be restricted, with sales of approximately $300 million.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
