Surat Diamond Industry Unfazed by De Beers’ Price Cut

Surat : Even as the world’s largest diamond mining company, De Beers has reduced rough diamond prices by 10% to 15% at its ongoing December sale sight, diamond companies in the world’s largest diamond cutting and polishing centre in Surat are unfazed as they believe that the price reduction does not align with the skyrocketing prices of rough diamonds and can’t turn a profit for them. 

Industry sources said that there is still a huge price gap between De Beers and the open market. De Beers roughs are about 25% more expensive than the goods at tenders and auctions in some categories. 

According to a report published by Rapaport group, the miner made the adjustment for most diamond categories, with a focus on those that have seen the weakest demand in recent months, the sources said. The company also removed some of the extra supply flexibility it had introduced during the recent downturn, they said.

Diamond manufacturers in Surat said that they are expecting deeper price cuts by the De Beers for providing stability in the diamond market. The traders are expecting that the miners should reduce about 25% to 30% of its rough prices to provide an edge to the diamond cutting and polishing market. 

The Surat diamond industry is observing the longest ever Diwali vacation as majority of the diamond units are yet to reopen following the recession. Insiders point out that most of the small and medium diamond cutting units are not likely to reopen before January 2025. 

“There is no point in purchasing rough diamonds when the prices of polished diamonds are falling due to the dwindling demand in the international market. There is little hope from the upcoming Christmas and New Year festival” said a diamond manufacturing company owner. 

Rakesh Gondalia, a diamond unit owner said, “It is becoming very difficult to sustain in the present market conditions. We are yet to decide on reopening our units. There is nothing much to do when the market is not good for the diamond cutters”