De Beers cut its official diamond prices for the first time in more than a year, according to people familiar with the matter, ending its attempts to support the market in the face of slumping demand.
The diamond industry has been beset by one of the deepest and most prolonged crises in modern history amid a pullback in Chinese luxury spending and rising popularity of synthetic stones. US tariffs on India — the world’s largest diamond exporter — have added even more pain.
De Beers typically tries to avoid price cuts because its outsize influence on the market means such a move can hit overall sentiment. Instead, the company has been selling discounted stones in secret sales, while official prices remained about 25% higher than the going rate for some categories.
On Monday, it sought to realign its position at the first regular sale of the year. The company made deep cuts in the price of rough diamonds bigger than three quarters of a carat, according to people familiar with the situation who asked not to be identified as the information is private.
A De Beers spokesperson declined to comment.
At its normal sales, De Beers sets prices and tells customers — known in the industry as “sightholders” — how much they are expected to purchase. While buyers can refuse, doing so can jeopardize their access to supplies in the future. The company sells its diamonds in boxes, sorted into different categories and sizes.