Botswana’s President Challenges De Beers for Greater Control of the Diamond Industry

Botswana’s escalating challenge to De Beers marks a defining moment in the global diamond sector, as resource-rich nations increasingly pursue greater control over their natural assets. The long-standing model where multinational mining firms oversee operations while host nations receive royalties is now being reshaped by state-driven strategies aimed at securing a larger share of the value chain.

This shift reflects a broader geopolitical trend, with emerging economies seeking vertical integration across critical mineral supply chains. By moving beyond extraction and into cutting, polishing, and distribution, countries like Botswana are positioning themselves to capture more of the downstream value traditionally dominated by international corporations.

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What Is Driving Resource Sovereignty in Diamond-Producing Nations?

At the core of this movement is a clear economic reality: controlling extraction alone limits long-term wealth creation. In the diamond industry, mining accounts for just 15–20% of the final retail value, while the remaining 80–85% is generated through downstream activities such as processing, branding, and retail distribution.

Governments across Africa are increasingly aware of this imbalance and are taking steps to address it. The push for resource sovereignty is not only about increasing revenue, but also about building sustainable, locally anchored industries that create employment and long-term economic resilience.

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The Economics of Vertical Integration

Botswana’s ongoing negotiations highlight the financial logic behind vertical integration. The current bid process for a significant stake in De Beers represents a strategic opportunity to restructure ownership and maximise national returns.

A breakdown of the diamond value chain illustrates the potential:

• Upstream mining: 15–20% of total value
• Midstream processing and sorting: 25–30%
• Downstream distribution and retail: 45–55%
• Branding and marketing premiums: 10–15%

By expanding into these higher-margin segments, producing nations can significantly enhance revenue capture and reduce reliance on external operators.

A comparable long-term strategy can be seen in Government Pension Fund Global, which transformed oil revenues into a globally diversified investment portfolio demonstrating how resource wealth can be leveraged beyond commodity cycles.

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Geopolitical Implications of Resource Control

Beyond economics, control over diamond resources provides substantial geopolitical leverage. Botswana’s reported engagement with Gulf-based investment partners, including sovereign wealth funds from Oman, signals a shift toward diversified strategic alliances.

Such partnerships extend beyond mining, encompassing energy, infrastructure, and broader mineral development. This multi-sector approach strengthens negotiating power while aligning with global trends in supply chain security.

Across Africa, similar strategies are emerging:

• Democratic Republic of the Congo tightening control over cobalt
• Ghana refining gold sector regulations
• Zambia restructuring its copper industry

These developments highlight a continent-wide shift towards sovereign resource management, driven by both economic ambition and geopolitical necessity.

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A Structural Shift in the Diamond Industry

Botswana’s stance represents more than a contractual dispute it signals a structural transformation in how diamond resources are owned, managed, and monetised. As producing nations assert greater control, the traditional dominance of multinational mining companies is being challenged.

For the global diamond industry, this evolution could redefine supply chains, pricing dynamics, and the balance of power for decades to come.

Source: DCLA

De Beers Group extends Desert diamonds into bridal with a new palette of lighter hues

 

De Beers Group today announces the next chapter of Desert diamonds: an extension of the industry-wide beacon concept into the bridal market, bringing a fresh interpretation of natural diamond engagement and wedding jewellery through a refined spectrum of warm, nature-made hues that reflect enduring love and personal expression.

First launched to consumers in 2025 as De Beers Group’s first new beacon in over a decade, Desert diamonds is supported by De Beers’ largest category marketing investment in more than ten years. Developed to galvanise the industry around a central idea, Desert diamonds celebrates the wild, natural origin of natural diamonds and the distinctive spectrum of tones that occur in nature — from warm whites to champagne hues — offering consumers a compelling, authentic story of individuality and connection.

A natural evolution into bridal

The new bridal-focused chapter builds on the strong cultural momentum Desert diamonds has generated since launch, as warmer-toned diamonds become increasingly visible in popular culture and are worn by high‑profile figures across fashion, music and entertainment – including Bad Bunny, Doja Cat and Teyana Taylor.

This cultural momentum has also been reflected in some of the world’s most talked‑about bridal moments. Taylor Swift’s engagement ring, crafted by Kindred Lubeck, widely noted for its warm, candlelight diamond tone, has become a powerful cultural reference point for consumers.

This cultural interest has also translated into retail impact. Independent retailers who were involved in the first Desert diamonds campaign across the US reported increased foot traffic during the campaign’s initial run in 2025 and a rise in bridal‑led enquiries, with consumers increasingly interested in how these naturally warm tones could be applied to life’s most meaningful milestones — particularly engagement and wedding jewellery.

A lighter desert palette for modern bridal

Launching 13 April 2026 across the United States, Desert diamonds bridal is designed to meet growing interest in a more versatile, accessible spectrum of diamond colours — a softer, lighter desert palette that testing indicates resonates strongly with bridal audiences seeking authenticity and individuality in their choice of engagement and wedding jewellery.

The campaign will feature design archetypes including solitaire rings, three-stone rings and diamond bands and eternity-style pieces, created to highlight the natural variation and character of each stone.

An industry‑wide programme to inspire renewed desire

As with previous De Beers beacons — from the diamond bands to the tennis bracelet — Desert diamonds is designed as an industry‑wide programme with the goal of celebrating natural diamonds and reigniting consumer desire. De Beers has collaborated with over 60 designers across the industry to develop collections that interpret the desert‑inspired palette across both engagement and bridal jewellery, including Kindred Lubeck, designer of Taylor Swift’s engagement ring, with pieces available for future brides and couples to purchase.

Sandrine Conseiller, CEO of De Beers Brands & Diamond Desirability, said: “The success of Desert diamonds has reaffirmed something we’ve long believed: today’s consumers are drawn to what is real, rare and deeply personal. By celebrating the naturally occurring beauty and individuality of natural diamonds, the campaign struck a chord culturally and at retail, inviting a new generation to reconnect with the story behind their diamond.

Extending Desert diamonds into bridal is a natural next step. When people choose an engagement or wedding ring, they’re looking for authenticity — a symbol that feels true to who they are and the love they share. With this lighter, desert‑inspired palette, we’re offering couples a diamond that reflects their own story: shaped by nature, rich in character, and unlike anything else.”

De Beers’ Desert diamonds bridal campaign is supported by an integrated marketing programme across digital, social, outdoor and experiential channels. Through evocative storytelling, the campaign brings the Desert diamonds story into the context of love and commitment, drawing parallels between the individuality of each diamond and the unique journeys of the people who wear them. The creative spotlights how every diamond is shaped by nature and time, inviting brides to celebrate a commitment that is truly their own.

Source: DCLA

De Beers Slashes Number of Sightholders

 

De Beers has reportedly slashed the number of sightholders who can buy their goods by as much as a third, as it seeks to consolidate supply among a small core of stronger buyers.

The number of sightholders is understood to have been reduced from 69 to around 45, although De Beers has not confirmed numbers. Sightholders were informed by letter or phone call on Friday, 20 March.

It is the second biggest cut, in percentage terms, since sights were launched back in 1934. The number of De Beers sightholders peaked at around 350 in the 1970s.

It was halved in April 2001 as the company sought to prioritize value-driven buyers over sheer volume of sales.

De Beers warned current sightholders back in October 2024 that it would be terminating some of their supply agreements, by way of what it called an objective selection and allocation process.

Existing contracts, signed in 2021 and extended last year through June 30, 2026, end soon, paving the way for the new roster starting July 1.

The cutback suggests that the loss-making miner is repositioning itself for survival in a weaker market by creating a limited customer base that can reliably take volume in tough times.

Anglo American’s repeated De Beers write-downs (the latest by $2.3bn in February 2026) underscore the loss-making reality. De Beers CEO Al Cook emphasized “quality over quantity” in late 2024, aiming for deeper partnerships including polished diamond sales from Botswana-sourced stones.

De Beers last reduced the number of sightholders in January 2021, when it introduced new contracts dividing buyers into three categories – dealers, manufacturers and integrated retailers.

Source: DCLA

TAGS FEBRUARY 2026 DUBAI MARKET & TENDER REPORT

 

There appears to be an improvement in both overall mood and confidence amongst buyers this month. We believe the reason behind this has been the recent behaviour of the leading producers, De Beers, Alrosa, and Angola. If we look at the last quarter of 2025, all 3 producers were distributing broadly, substantial volumes of goods, whether in boxes or special deals across all the major centres to anyone willing to buy. However, by the year end all 3 producers tightened distribution significantly. De Beers only sold a “special deal” to one customer, as did Alrosa, and Angola (Catoca) reduced from ten boxes to just three. Luelle followed suit reducing from ten boxes to just five. This served to tighten both supply and distribution.

The sale of De Beers by Anglo American continues with ongoing speculation as to which consortium will be the purchaser. Following the publication of De Beers full year figures released on 20 th Feb, there was a further $2.3 billion write down of the company. This is the third write down in as many years bringing the company to a $2.3 billion valuation.

We believe that once a clear leadership role is established, it will provide a further boost to confidence within the industry.

Rough

As seen recently larger sizes of rough +10cts remain in good demand, as do the 5-10ct ranges reflecting strong prices, where 2 carat polished is in good demand. 2-4 carat goods are also strong, but it seems this has still to be reflected fully in the polished prices of 4grs. The 3-6grs, which for several months have been less popular, have seen a resurgence in demand primarily since De Beers adjusted their prices last month, however again this demand is surprising because sales of pointer polished remain slow.

An area of significant change has been the smalls -3grs. While price in these areas remains key, we are seeing some demand. This is in stark contrast to the situation at the end of 2025, just 6 weeks ago, when customers had no appetite to even look at the goods.

Last week De Beers informed its customers that some goods could be refused prior to the Sight without negatively impacting the customers ‘demonstrated demand’ quota. These were primarily in some area -3gr +7, and -7, and all Near Gem and Industrial boxes. This might indicate that there will currently be no price adjustment made in these areas during the February Sight.

Overall, it is expected that again De Beers will keep distribution tight which will continue to help the market. Alrosa commenced sales this week and echoed the general sentiment, with prices in the 2-10ct ranges increasing by between 3-5%. Mid-range sizes 4-6grs reduced by 2-3%, to fall in line with market prices. -9 sizes have also been reduced to reflect current market price.

All these adjustments are broadly aligned to market demand, so although perhaps fragile, as polished sales are slow, the market seems to be finding an equilibrium.

ODC sales run from 16 th – 25 th Feb, where they will present 972,000 carats, including some ROM parcels purchased last Oct.

Polished

Polished prices seemed to have slowed their decline in several areas, noticeably 0.30-1.00 carat sizes. Overall, polished markets at retail level are seasonally quiet. In US there has been demand for 1.50 carat and larger in Rounds and Fancy shapes, and Valentines sales look positive. Indian polished demand slowed slightly due to high gold prices, and China remains weak.

The Interim Agreement framework, between US and India, announced in early February, under which zero tariffs will be applied to diamonds and coloured gemstones entering the US from India has been unanimously welcomed. Currently tariffs have been reduced to 18% (effective March 2026) which will provide immediate relief and once the agreement is concluded full zero tariff should revive competitiveness. The effect of tariffs last year resulted in a 60% fall in polished diamonds exports to the worlds leading market. It is expected that India may pause exports to the US, while final terms are discussed. Tariffs on finished jewellery will remain at 18%.

TAGS Tenders

We presented our latest tender from 16 th – 20 th Feb. The event consisted of a full range of size categories and qualities with an emphasis on +5 carats. The value was more than $16m, and we welcomed well over 100 companies to view. We concluded a sell through of 60% to a total of 46 international companies. As expected, the strongest bidding took place in the larger sizes and higher qualities.

Our regular tender of high quality Southern African production commences on 1 st March until 6 th March, and this will be followed by another Zimbabwe production from ZCDC, which will run from 8 th -12 th March.

Source: DCLA

De Beers Reports $511 Million Loss as Global Diamond Crisis Deepens

 

The global diamond industry is facing its most severe downturn in decades, with De Beers posting a staggering $511 million EBITDA loss for 2025 — a dramatic collapse that underscores mounting structural pressures across the natural diamond market.

Despite generating approximately $3.5 billion in revenue, profitability deteriorated sharply, highlighting a widening disconnect between stable turnover and collapsing margins. The downturn reflects a perfect storm of falling realised prices, swelling inventories, rising operational costs and intensifying competition from laboratory-grown alternatives.

This historic loss signals more than a cyclical slowdown — it marks a structural turning point for the global diamond sector.

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Why Did De Beers Record a $511 Million Loss?

The scale of the financial decline is unprecedented. The company’s EBITDA performance deteriorated nearly 2,000% year-on-year, shifting from manageable losses into industry-defining deficits.

Key Drivers Behind the Collapse:

• Lower realised rough diamond prices
• Inventory accumulation throughout the midstream
• Production cuts impacting fixed-cost absorption
• Asset impairment charges reflecting weaker long-term pricing assumptions

While revenues remained broadly stable, margins compressed dramatically — revealing that demand weakness is affecting pricing power rather than transaction volume alone.

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Production Cut by 12% as Supply Is Calibrated

In response to deteriorating market conditions, rough diamond production was reduced by 12% to 21.7 million carats in 2025.

Unlike gold or oil markets where production cuts can rapidly rebalance supply, the diamond sector operates through a complex value chain involving mining, cutting, polishing and retail distribution. Inventory build-ups in 2025 forced disciplined output reductions designed to:

• Preserve cash flow
• Prevent further price collapse
• Protect long-term reserve value
• Stabilise global supply

However, elevated stockpiles remain a major overhang for 2026.

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Lab-Grown Diamonds Accelerate Structural Disruption

Laboratory-grown diamonds continue gaining market share, particularly in engagement rings — historically the most valuable segment of natural diamond demand.

These synthetics are chemically identical but typically sell for 60–80% less than natural stones.

Competitive Advantages of Lab-Grown Diamonds:

• Lower retail prices
• Ethical and environmental positioning
• Consistent quality
• Rapid scalable production

Millennial and Gen Z buyers are demonstrating increased price sensitivity and different value priorities compared with previous generations — a demographic shift that is reshaping long-term demand dynamics.

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China’s Luxury Slowdown Hits Diamond Demand

China, once a powerful growth engine for premium diamond jewellery, is experiencing reduced luxury consumption.

Key contributing factors include:

• Slower GDP growth
• Property market weakness
• Lower consumer confidence
• Currency sensitivity to imports

With Chinese buyers representing a significant share of high-end global diamond demand, the slowdown is having a disproportionate impact on producers.

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US Tariffs Disrupt Indian Diamond Processing Hub

Trade policy has compounded the crisis. India processes roughly 80% of the world’s rough diamonds, and new US tariffs on Indian polished stones have created additional cost pressures and uncertainty.

The impact includes:

• Higher landed costs for US-bound diamonds
• Supply chain bottlenecks
• Planning uncertainty
• Competitive distortions

Even if tariff relief emerges later in 2026, industry participants remain cautious about near-term recovery.

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Anglo American Takes $2.3 Billion Impairment

Parent company Anglo American recognised a $2.3 billion impairment related to its diamond division, reflecting revised long-term price expectations.

This writedown signals a structural reassessment of the sector rather than a temporary cyclical dip.

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African Economies Feel the Pressure

Diamond-producing nations such as Botswana face heightened economic vulnerability. Diamond revenues contribute substantially to:

• Government income
• Foreign exchange earnings
• Employment
• GDP

Production discipline across Southern Africa reflects both market necessity and economic sensitivity.

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What Happens Next? Recovery Scenarios for 2026–2028

Industry forecasts suggest cautious optimisation in 2026, with gradual recovery potentially emerging through 2027–2028.

Key variables include:

• Inventory normalisation
• Stabilisation of Chinese demand
• Trade policy resolution
• Lab-grown market share plateau

However, structural competition from synthetic diamonds is likely permanent, meaning natural diamond producers must reposition strategically.

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What This Crisis Reveals About Luxury Commodity Markets

The diamond downturn highlights broader lessons for luxury commodities:

• High income elasticity creates sharp downturn risk
• Supply chains concentrated in single regions amplify vulnerability
• Technological disruption can permanently reshape pricing structures
• Inventory cycles in opaque markets create extended recovery timelines

Unlike transparent commodities such as gold, diamond pricing lacks a centralised exchange — increasing volatility during stress periods.

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Investment Perspective

For long-term investors, sector distress can present contrarian opportunities — but risks remain elevated.

Favourable characteristics may include:

• Low-cost producers
• High-grade deposits
• Strong balance sheets
• Vertical integration

Nevertheless, structural shifts in consumer preference require careful risk-adjusted evaluation.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Commodity investments carry substantial risk, including potential loss of capital. Readers should conduct independent research and consult qualified financial professionals before making investment decisions.

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DCLA News will continue monitoring developments in the global diamond sector as the industry navigates one of the most challenging periods in modern history.

Anglo flags third De Beers writedown as Teck merger looms

 

Anglo American is weighing a third writedown of De Beers in as many years as weak diamond prices persist and the miner advances asset sales ahead of its merger with Canada’s Teck Resources.

The century-old group said on Thursday it was reviewing the carrying value of its diamond business after average realized prices fell in 2025, warning the unit is likely to be lossmaking again.

The potential impairment comes as Anglo moves to finalize the sale of non-core assets, including De Beers. At the same time, the miner is preparing to merge with Teck in a transaction approved by shareholders and regulators late last year, creating Anglo Teck (official named confirmed).

The company booked a $2.9 billion impairment on De Beers in February last year, following a $1.6 billion writedown in 2024. Anglo, which owns 85% of the diamond company, offered few details on a sale process, saying only that it was “progressing.”

In a fourth-quarter production update, Anglo said diamond trading conditions “continued to be challenging” amid industry weakness, geopolitical tensions and tariff uncertainty. It said lower prices and market conditions could lead to an impairment when full-year results are released.

Diamond prices have come under pressure from weaker consumer demand in China and competition from cheaper, lab-grown stones. De Beers’ average realized price fell 7% to $142 per carat in 2025, driven by a 12% drop in the average rough price index.

Anglo said the decline was exacerbated by selling inventory below cost, largely lower-value goods. Adjusted for that mix, the equivalent price index reduction would have been 25% year on year, suggesting some underlying resilience in the market.

De Beers sold 5.9 million carats in the fourth quarter, up from 4.6 million a year earlier, lifting revenue to $571m from $543m. Even so, Anglo said it was undertaking an impairment review that could result in another writedown.

Exit hurdles
The prolonged slump complicates Anglo’s efforts to exit De Beers. Chief executive Duncan Wanblad said only that the sale was moving forward. A consortium led by former De Beers managing director Gareth Penny is seen as a frontrunner, though Botswana, which owns 15% of the company, has said it wants to take control.

Namibia has also expressed interest, and former chief executives Bruce Cleaver and Penny have been mentioned as potential buyers.

The De Beers sale forms part of a restructuring unveiled in 2024. Anglo demerged its platinum arm, Amplats (now Valterra), in June 2025, while the planned sale of its Australian metallurgical coal mines stalled after Peabody Energy (NYSE: BTU) walked away following a fire at Moranbah North.

Wanblad said on Thursday that the formal sale process for steelmaking coal was “progressing well,” without naming alternative buyers or addressing potential compensation from the US firm.

Copper reality check
Copper remains central to the Anglo-Teck investment case, but near-term output expectations have softened. Anglo cut its 2026 copper guidance to 700,000 to 760,000 tonnes from 760,000 to 820,000 tonnes, citing lower grades at several operations.

It also trimmed 2027 guidance to 750,000 to 810,000 tonnes, including at Collahuasi in Chile, which Anglo and Teck plan to integrate with Teck’s neighbouring Quebrada Blanca mine. For the longer term, the group added new guidance for 2028 of 790,000 to 850,000 tonnes.

A 15-km (9.3-mile) conveyor would be built to feed Collahuasi’s high-quality ore into QB’s new processing plants. (Click on map to enlarge)
Copper production in 2025 was 695,000 tonnes, roughly flat year on year and at the lower end of guidance. Goldman Sachs said output missed its estimate by 5%, with Anglo’s Quellaveco mine in Peru falling short by 10% on lower-than-expected grades. Collahuasi’s underperformance was already known, while Los Bronces in Chile ended the year strongly.

Adjusting for Collahuasi, the underlying miss narrows to about 2%, which Goldman said better reflects what the market had already priced in.

A sharp rise in copper prices in recent months has renewed interest in the metal and helped spur merger talks between rivals, including the once again abandoned merger between Rio Tinto (ASX, LON: RIO) and Glencore (LON: GLEN).

With ageing mines delivering lower grades and new projects costly and slow to develop, copper dealmaking has become more attractive as supply constraints tighten across the sector.

Source: DCLA

De Beers to Release “A Diamond Is Forever” Book Celebrating a Century of Natural Diamond Legacy

 

De Beers is set to release A Diamond Is Forever, a new luxury book exploring the evolution of the company’s natural diamond marketing and its profound influence on global culture, romance, and society. The book will be published next week by Assouline, a renowned publisher of high-end illustrated volumes.

Named after one of the most iconic advertising slogans in history, A Diamond Is Forever celebrates the cultural, artistic, and emotional legacy of natural diamonds — nature’s oldest treasure and one of humanity’s most enduring symbols of love and commitment.

De Beers is widely credited with transforming diamonds from an exclusive luxury reserved for society’s elite into a universal symbol used to mark life’s most important romantic milestones and personal achievements. Prior to the 1930s, diamond jewellery was exchanged discreetly within elite circles, with luxury houses maintaining strictly private client relationships. De Beers reshaped this narrative, positioning diamonds at the heart of modern romance.

In 1947, De Beers copywriter Frances Gerety coined the legendary phrase “A Diamond Is Forever,” embedding the gemstone into global consciousness as a lasting promise of love, endurance, and emotional significance. The slogan appeared across archival print advertising, magazine spreads, and celebrity endorsements, cementing the diamond’s place in popular culture.

The book also highlights De Beers’ historic collaborations with celebrated artists such as Pablo Picasso, Salvador Dalí, and Raoul Dufy, drawing parallels between the rarity of diamonds and the genius of fine art. These campaigns elevated diamonds beyond jewellery, reinforcing their artistic and cultural value while preserving a sense of exclusivity.

During the 1960s, Hollywood icons including Elizabeth Taylor and Marilyn Monroe further amplified the glamour of diamonds, while the company’s influential 1990s “Shadows” campaign — set to Karl Jenkins’ Palladio — captured the gemstone’s timeless, authentic, and eternal nature.

Over the past two decades, De Beers has periodically retired and revived the famed slogan, most recently reintroducing it in late 2023 as part of a refreshed “Seize the Day” campaign, originally launched in the 1990s.

According to the publisher, the story of diamonds is one of both transformation and continuity. In recent years, the narrative has expanded to include provenance, sustainability, and ethical stewardship, reinforcing the natural diamond as a symbol not only of beauty and permanence, but also of responsibility and conscience.

A Diamond Is Forever spans 240 pages and features 180 illustrations. Presented as a hardcover book housed in a luxury slipcase, it will retail for USD $195 and is scheduled for release on January 30.

Source: DCLA

De Beers Confirms 2026 Sight Dates and Cuts Rough Diamond Prices as Global Market Pressures Intensify

 

De Beers has released its 2026 sight schedule, confirming it will maintain its traditional 10 rough diamond sales over the 12-month period, providing a degree of operational continuity amid prolonged uncertainty across the global diamond industry.

The miner sells approximately 90% of its rough diamond output to approved sightholders, who commit to purchasing set volumes of rough diamonds in exchange for consistent and predictable supply. In line with this strategy, De Beers has confirmed it will extend its current sightholder agreement through 30 June 2026, ensuring stability within its sight system during a challenging market environment.

The extended contract continues to regulate De Beers’ rough diamond sales, which are sourced from its wholly owned and joint-venture mining operations in Botswana, Namibia and South Africa. Sales will continue to be conducted in these producing countries.

In a minor operational adjustment, De Beers announced that the April and September 2026 sights will be shortened to four days, compared with the traditional five-day format.

De Beers 2026 Sight Dates

• Sight 1: 19–23 January
• Sight 2: 23–27 February
• Sight 3: 23–27 March
• Sight 4: 27–30 April
• Sight 5: 25–29 May
• Sight 6: 6–10 July
• Sight 7: 17–21 August
• Sight 8: 22–25 September
• Sight 9: 26–30 October
• Sight 10: 30 November–4 December

De Beers Cuts Rough Diamond Prices Amid Weak Demand

Alongside the announcement of its 2026 sight calendar, De Beers has reportedly cut rough diamond prices, reflecting mounting pressure from weak demand, surging lab-grown diamond supply and ongoing trade disruptions.

The January reduction marked the company’s first official price cut since December 2024, following months of quietly offering discounts while maintaining official list prices above prevailing market levels. At the first regular sight of the year, De Beers implemented price reductions on rough stones larger than three-quarters of a carat, according to industry sources.

The exact scale of the price cuts remains unclear, as De Beers has adjusted its billing structure and altered the composition of its diamond boxes, making direct comparisons difficult. Under the sight system, De Beers sets prices and indicates expected purchase volumes for sightholders, a structure that continues to give the miner significant influence over the rough diamond market, despite buyers retaining the technical right to refuse goods.

Industry Downturn and Structural Challenges

The global diamond industry is experiencing one of its deepest downturns in decades, with demand and prices for natural diamonds declining sharply from 2023 through 2025. Miners have been forced to scale back production and reassess long-term strategies as market conditions deteriorate.

A major structural challenge has been the rapid rise of lab-grown diamonds, whose prices have collapsed in recent years. This has enabled lab-grown stones to capture increasing market share, particularly in the bridal jewellery segment, undercutting natural diamonds across key consumer categories.

China, once a vital growth engine for diamond jewellery, has become a significant drag on demand due to a slowing economy and declining marriage rates. At the same time, geopolitical pressures, including tighter sanctions on Russian diamonds, ongoing tariff threats and global trade frictions, continue to disrupt the diamond supply chain.

Trade Tensions Add Pressure to India’s Diamond Sector

Further uncertainty has emerged from US–India trade tensions, which have weighed heavily on India’s diamond industry. Under President Trump, US tariffs on a range of Indian imports — including gems and jewellery — were raised to as high as 50%, creating additional headwinds for global diamond flows.

The impact has been particularly acute given India’s central role in the industry. The country cuts and polishes around 90% of the world’s diamonds by volume, while the United States remains its largest export market, accounting for approximately one-third to nearly half of India’s diamond and jewellery exports.

As the official CIBJO laboratory for Australia, DCLA continues to closely monitor developments in rough supply, pricing dynamics and certification standards, as the natural diamond sector navigates a period of profound structural change.

Source: DCLA