De Beers has cut diamond prices in an attempt to stem the predicted slowdown in the sector.
Data from WWW International Diamond Consultants indicated diamond prices slipped 18 per cent last year, and according to IBISWorld reports, the industry is predicted to experience an annual compound decline of 4 per cent over the five years through 2015-26, to fall to $380.1 million.
“The industry’s performance has been volatile over the past five years, due to fluctuating production volumes and prices; a significant drop in revenue in 2013-14, and another expected fall in revenue in 2015-16 are expected to underpin the industry's poor performance over the period, “ IBISWorld stated.
Prices have declined one per cent month on month.
This fall, while in line with the general decline in mining, has been precipitated by Australia oversupplying the market.
The diamond arm of Anglo American, De Beers, has dropped prices by almost seven per cent, according to Bloomberg.
It has also cut its production targets to buoy prices by removing supply, although it still accounts for approximately 40 per cent of world production.
Yet it is not all negative news, with RBC Capital Markets expecting some stabilisation in the future, stating they were ‘cautious’ on rough prices this year.