De Beers, the world's biggest diamond producer, has lowered prices by as much as nine percent to boost sales, Bloomberg News said Monday quoting three unnamed sources.
The move came amid a wider commodities slump, with global stock markets plunging over fears of an economic slowdown in China, a key growth sector for diamond sales.
The price cuts follow a squeeze in production that failed to fuel demand for diamonds, the sources said, adding that about $250 million of the precious stones would be put on sale.
"The industry is in a very precarious position, it could go either way," Kieron Hodgson, an analyst at Panmure Gordon in London, told Bloomberg.
"De Beers have recognised that and responded."
De Beers, founded in South Africa in 1888, is majority-owned by Anglo American which declined to comment.
Anglo American shares tumbled to a 15-year low on Monday as commodity prices including copper, coal and iron-ore were all hit.
China-linked shares have led the global stocks sell-off, with Shanghai closing down 8.49 percent, the biggest daily loss since February 27, 2007.
Falling oil prices also weighed on market sentiment, sliding below $40 a barrel for the first time since 2009.
Last month De Beers cut its 2015 production goal to 29-31 million carats from an earlier target of 30-32 million carats.
As well as China, India is seen as a key growth market for diamonds, which tap into burgeoning middle-class aspirations.
GMT 09:47 2018 Tuesday ,23 January
SAP unveils big push into French tech start-upsGMT 05:07 2018 Tuesday ,23 January
Noble Group shares surge 37 percent on buyout talksGMT 19:07 2018 Monday ,22 January
BAKS spent Dh225m on charity projects in 2017GMT 22:52 2018 Sunday ,21 January
French firm "recalls baby milk product"GMT 22:27 2018 Sunday ,21 January
US company plans funds that double bitcoin price movesGMT 21:23 2018 Sunday ,21 January
Pence starts Mideast tour in Egypt amid Arab angerGMT 08:54 2018 Saturday ,20 January
Million-euro bill for firm behind Paris bike-share chaosGMT 10:47 2018 Friday ,19 January
German chemical giant BASF sees 'significant' profit leapMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor