A challenging rough diamond market marked by cautious buyer sentiment and excess polished inventory dented De Beers’ first-half 2025 results.

Falling diamond prices alongside inventory adjustments, which required selling certain diamonds at reduced margins, resulted in a loss of US$189 million in the first half of 2025. Revenues, meanwhile, dipped to US$2 billion from US$2.2 billion a year ago, driven by a 13 per cent reduction in rough diamond sales to US$1.7 billion from US$2 billion in 2024 as demand and prices declined.

First-half consolidated average realised prices in the six months ending June 30, 2025 were down 5 per cent to US$155 per carat, reflecting the impact of a 14 per cent decrease in the average rough price index.

“Rough diamond trading conditions remained challenging in the first half of 2025 as both the diamond midstream and downstream adopted a cautious approach to restocking amid broader market uncertainty, coupled with continued surplus polished inventory in the midstream,” noted De Beers’ mother company, Anglo American plc.

More stable polished diamond prices in the first quarter of the year provided a tentative respite but polished trading slowed again the following quarter amid tariff-related uncertainties.

Amid challenges in the wholesale rough and polished diamond trade, De Beers said consumer demand for diamond jewellery was broadly stable in the first half of the year. 

“Demand in the US held steady year-to-date, though the full impact of the tariffs has yet to be seen,” the company said. “In India, leading retailers reported double-digit growth in the first quarter of the year. Meanwhile, the rate of decline in China appears to be slowing, while demand in Japan and the Gulf remains robust.”

The group earlier reported a 36 per cent decline in second-quarter diamond production.

Outlook

De Beers said rough diamond trade remains subdued in the near-term due to tariff woes while ongoing geopolitical and macroeconomic instability continues to dampen sentiment. Medium-term recovery prospects, meanwhile, are supported by diamond producers seeking to adjust supply to meet prevailing demand, and a gradual improvement in demand, particularly in China.

“The outlook for natural diamonds is further bolstered by growing demand for verified provenance. TracrTM, the pioneering blockchain traceability platform developed by De Beers, now provides single-country origin information for all gem-quality diamonds over 0.5 carats – aligning with new G7 import rules,” the company said.