MOSCOW, July 8. /TASS/. De Beers’ decision to cut diamond prices amounts to a capitulation to market conditions and is likely to put additional pressure on Alrosa by setting a benchmark for further price declines across the industry, experts interviewed by TASS said.
"The main reason behind De Beers’ price cut is its capitulation to the market. For years, the company kept its official prices 5% to 50% above the secondary market while quietly offering discounts to selected clients to avoid openly undermining market sentiment," Finam analyst Egor Vershinin told TASS.
According to him, after sharply reducing the number of companies eligible to buy rough diamonds directly, De Beers has, for the first time, openly and significantly cut prices across nearly all categories, marking a break with its long-standing policy of artificially inflated pricing.
"Such moves weigh on market sentiment. De Beers and Alrosa have historically moved in tandem, and a step by a producer accounting for roughly 25% of global diamond output sets a benchmark for further price declines across the industry," Vershinin added. He noted, however, that the decision would not directly affect Alrosa’s sales because Western markets remain closed to the company due to sanctions.
