De Beers, the world's largest diamond producer, has raised the price of some rough diamonds by about 10 per cent to profit from a strong recovery in diamond demand.
After stalling at the start of the pandemic last year, the global diamond industry has recovered rapidly over the past six months. This creates an opportunity for the largest producers to raise prices quickly. De Beers has been raising prices since the end of last year and has now returned to COVID-19 's pre-crisis levels. In the first three sales cycles this year, the company's rough diamond sales exceeded $1.6 billion, the highest level since 2018.
According to people familiar with the matter, the company this week raised the price of some rough diamonds above 2 carats by about 10%, and the prices of other valuable products also rose in single digits. At the same time, the company has also raised the price of some small diamonds.
The speed and strength of the recovery of the diamond industry surprised many in the industry. At the beginning of this year, the two largest diamond miners de Beers and Russia's Alrosa had billions of dollars in excess inventory accumulated last year, but sold almost all of those stocks in the first quarter, as well as the diamonds they mined.