The world’s biggest diamond producer reportedly slashed prices at its first sale of the year, in a bid to stimulate a flagging market.
DeBeers, majority owned by Anglo American AAL, -1.16%, reduced prices by 10% at its first sale of diamonds, Bloomberg reported on Tuesday, citing sources. Some of its larger stones saw cuts of 25%.
A global economic downturn, increasing popularity of lab-grown diamonds and fewer marriages and engagements following the pandemic have weighed on demand for the gems in recent years.
DeBeers announced in December that it expected to sell two-thirds fewer diamonds in the final sales cycles of 2023 than in the same period last year, aimed at reducing a market glut.
It and other gemstone sellers divide the year into a series of five-week sales cycles that correspond to amounts of time it takes for manufacturers to cut and polish the rough diamonds they purchase. DeBeers had previously started limiting its sales in its eighth sales cycle last year as demand fell throughout 2023.
De Beers last year tried to spur some demand by resurfacing a newer version of its classic “A Diamond is Forever” advertising campaign in the U.S. and China.