05 August 2016 at 1:46 GMT
Nikkei Asian Review
Diamond prices are sinking like a rock as inventory piles up amid sluggish demand and an uncertain global economy. International prices of the highest-quality diamonds in the 3-carat weight range have dropped about 5% over the past two months. Prices have been declining since the second half of 2014, but have plunged 10% or so over just the past year. Though US demand remains solid, the growth market of China has been lacklustre as President Xi Jinping's anti-corruption campaign put the brakes on luxury goods consumption. Mining leaders De Beers and Alrosa supply rough diamonds to polishing companies, which in turn sell their output to trading companies. The worsening market has mining companies altering their previously bold pricing.
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