De Beers to cut prices by 9pc
After cuts to production costs failed to support demand, De Beers, the world's biggest diamond producer, has lowered prices to help tackle falling jewellery sales.
According to three sources familiar with the situation, the company has slashed prices by up to 9pc.
De Beers plans to offer about $250m of diamonds for sale. Customers may buy more after the price cuts, according to the sources.
An analyst with Panmure Gordon in London, Kieron Hodgson, said that De Beers has reacted to the state of the industry.
"The industry is in a very precarious position, it could go either way. De Beers has recognised that and responded."
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.
Anglo American, which owns 85pc of De Beers, has seen its shares plummet in the last year by 56pc, reaching a 15-year low on Monday.
The exposure to diamonds increased to over one-third of revenue last year.