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A representative from the company chose not to provide a comment. As per Bloomberg sources, the price reduction took place in July, in the company's initial trading session following a significant decrease in the number of chosen buyers (sightholders), a decision made this year as part of its strategy to enhance sales to its biggest clients.
The modification impacted nearly every category of diamonds offered. The precise amount of the price cut remains uncertain since De Beers this year implemented a policy of single-line invoicing, omitting individual box prices, complicating pricing, and also altered the product assortment of certain boxes.
Nonetheless, purchasers indicated that prices are currently significantly nearer to those on the secondary market, where resellers, cutters, and polishers sell De Beers parcels. According to the agency's sources, De Beers prices were earlier 5-50% elevated, based on the type of stones.
De Beers generally seeks to prevent price reductions, since its significant market power implies that such an action could adversely affect market sentiment. Instead, the Anglo American firm secretly sold stones at discounted rates, while keeping official prices in certain categories well above market levels.
source: bloomberg.com
The modification impacted nearly every category of diamonds offered. The precise amount of the price cut remains uncertain since De Beers this year implemented a policy of single-line invoicing, omitting individual box prices, complicating pricing, and also altered the product assortment of certain boxes.
Nonetheless, purchasers indicated that prices are currently significantly nearer to those on the secondary market, where resellers, cutters, and polishers sell De Beers parcels. According to the agency's sources, De Beers prices were earlier 5-50% elevated, based on the type of stones.
De Beers generally seeks to prevent price reductions, since its significant market power implies that such an action could adversely affect market sentiment. Instead, the Anglo American firm secretly sold stones at discounted rates, while keeping official prices in certain categories well above market levels.
source: bloomberg.com
