BackDe Beers said to cut diamond prices as much as 9% on weak demand
De Beers lowered prices after production cuts failed to support demand for the precious stones
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London: De Beers, the world’s biggest diamond producer, lowered prices after production cuts failed to support demand for the precious stones, according to three people familiar with the situation.
The Anglo American Plc unit reduced prices as much as 9%, according to the people, who asked not to be identified as the information isn’t public. De Beers plans to offer about $250 million of diamonds for sale. Customers may buy more after the price cuts, the people said.
The company has already agreed to allow its customers, known as sightholders, to defer pre-agreed purchases at the August sale this week in Botswana, the biggest diamond producing country. A spokesman for De Beers declined to comment.
De Beers and other diamond producers are under pressure to cut supply and lower prices as traders, cutters and polishers struggle to turn a profit amid a squeeze on credit and languishing jewelry sales. De Beers had sought to support the diamond market by reducing production rather than prices.
The company last month cut its full-year goal to 29 million to 31 million carats from an earlier target of 30 million to 32 million carats. At the start of the year, it was planning to mine as much as 34 million carats. Anglo owns 85% of De Beers, with Botswana controlling the rest.
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