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De Beers Narrowed Losses In H1 2026 Despite A Sharp Decline In Rough Diamond Prices

The decline reflected significantly lower realised rough diamond prices, although underlying operating performance improved. higher production, increased sales volumes and aggressive cost-cutting helped offset weaker pricing.

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De Beers narrowed its losses in the first half of 2026 despite a sharp decline in rough diamond prices, as higher production, increased sales volumes and aggressive cost-cutting helped offset weaker pricing.

Revenue fell 19% to US$1.58 billion in the six months that ended 30 June 2026, from US$1.95 billion a year earlier. The decline reflected significantly lower realised rough diamond prices, although underlying operating performance improved.

Underlying EBITDA loss narrowed to US$113 million from US$189 million in the first half of 2025, while the underlying EBIT loss improved to US$209 million, compared with US$303 million a year earlier. EBITDA margin improved to -7% from -10%.

The average realised rough diamond price fell 32% to US$105 per carat, driven by a weaker product mix and a 16% decline in the average rough price index following inventory rebalancing measures introduced during 2025.

However, De Beers increased production by 46% to 14.9 million carats, while sales volumes rose 13% to 12.4 million carats, reflecting improved availability and stronger trading activity than in the comparable period. Unit costs declined 26% to US$64 per carat, helping cushion the impact of lower prices. Capital expenditure was reduced by a third to US$115 million.

During the second quarter, De Beers sold 6 million carats of rough diamonds, generating US$665 million in consolidated revenue, compared with US$1.2 billion from 6.8 million carats in the same period last year, underscoring the continued pressure on prices despite relatively stable demand.

The company maintained its 2026 production guidance at 21-26 million carats, although planned maintenance at the Orapa and Jwaneng mines and the proposed production pause at the Venetia mine in South Africa are expected to reduce output in the second half. Unit cost guidance remains unchanged at around US$80 per carat.

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International News

Israel’s Diamond Industry Hits Record Lows

From January To June 2026, Israel Exported Only $2.4 Billion In Diamonds. At Its Peak In 2015, That Figure Was Around $7 Billion—More Than Three Times Higher.

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Israel’s diamond exports have dropped dramatically to their lowest levels in history. Reflecting these difficult times, the head of the Israel Diamond Exchange has announced his resignation.

Key Numbers

  • Massive Drop in Exports: From January to June 2026, Israel exported only $2.4 billion in diamonds. At its peak in 2015, that figure was around $7 billion—more than three times higher.
  • Total Trade Shrinking: Total industry trade (combining imports and exports) fell to $4 billion, down from $12 billion during its best years.

Why Is the Industry Struggling?

  1. Competition from Dubai: Dubai has become a major global diamond hub, drawing traders away from Israel with lower tax rates.
  2. Lab-Grown Diamonds: Man-made diamonds are significantly cheaper than natural ones, taking away a large portion of the market.
  3. New U.S. Tariffs: A new 10% import tax on diamonds was recently introduced by U.S. President Donald Trump. Since the U.S. buys about 20% of Israel’s diamond exports, this tax hits the local industry hard.
  4. Shifting Consumer Habits: Younger buyers are spending more money on experiences rather than luxury jewelry. Additionally, diamond demand in China has slowed down significantly.

Global Impact & What’s Next

The downturn isn’t just affecting Israel; it is a global issue. Even De Beers—one of the world’s biggest diamond companies—has been put up for sale for the first time ever.

Despite these setbacks, Israel still holds key advantages in the market, such as strong client relationships and deep expertise in cutting large, rare, and colored diamonds. Israeli officials are currently negotiating with the U.S. to lower the new tariffs and working with their own government for tax relief to help the industry bounce back.

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