De Beers optimistic despite $189 million loss
Lewanika Timothy | Wednesday August 6, 2025 11:58
The losses, which affirm the protracted slump in the market, are not a sign of a tougher future, according to De Beers.
The group’s financials have been under pressure as the global diamond market has been facing steep headwinds driven by competition from synthetics and low demand in key markets such as China.
Despite losing $189 million, De Beers is certain that its fundamental markets remain strong and resilient, and demand will continue to tick up in the long-term horizon.
Announcing the group’s provisional half-year results, Vice President of Diamond Trading at De Beers, Paul Rowley, said the group continued to be resilient and is anticipating a recovery in the diamond market, even though the recovery won’t be shaped like a hockey stick.
“The short-term is looking choppy, but we have come out of a storm, probably one of the worst since the early 1980s or the 1930s. The market has remained resilient, especially the U.S market, despite headwinds,” he said. “Even though other markets have shrunk, such as China, there has been growth in other markets such as India.”
The diamond industry woes began after 2021, when markets were exiting lockdowns and demand was bullish, leading to a stockpiling of diamond inventories in the midstream. The market would later suffer a glut as selling these stockpiled diamonds proved to be an uphill task with key players such as China facing slow economic activity.
Rowley further shared that the diamond industry woes were made trickier by President Donald Trump’s tariffs against global trading partners. This week, India was slapped with a 25% tariff as the United States continued with its bid to push for fair trade through balancing its trade deficits.
The slap means that diamonds that are distributed through India will bear more cost for American consumers, according to Rowley.
“The way tariffs work for goods such as diamonds is that they become an income tax for American citizens because at the end of the day it’s the customer who will pay for these additional costs,” he said.
De Beers has joined hands with other diamond industry players, such as the Rough Diamond Council, to plead with Washington to exempt diamonds from tariffs, as America does not produce diamonds itself and can’t claim unfair trade with other trade partners. Rowley has revealed that negotiations with Washington are still ongoing, and as of now, De Beers hasn’t decided on the best trade routes for diamonds as the Trump tariffs are not fully in place.
The positive outlook for diamonds has been something De Beers has maintained for a while now, although the market has been proving to be recovering slower than De Beers' expectations. The next yardstick for the health of the diamond industry will be the Hong Kong show in September.