The global diamond industry remains under severe pressure, with De Beers reporting another difficult six months as weak rough diamond demand, lower prices and intensifying competition from laboratory-grown stones continued to weigh on the world’s largest diamond producer. Yet, even as earnings remained in the red, the company struck a cautiously optimistic tone, pointing to the first signs that years of market disruption may finally be beginning to ease.
Presenting its half-year results, De Beers said the first half of 2026 was shaped by geopolitical tensions, macroeconomic uncertainty and structural changes within the diamond market. The war in the Middle East disrupted global trade routes, raised energy costs and dented consumer confidence, while uncertainty surrounding United States tariffs, synthetic diamonds and elevated midstream inventories suppressed rough diamond demand.
Revenue fell to US$1.6 billion from US$2.0 billion a year earlier, while the average realised price dropped to US$105 per carat from US$155. Despite increasing production by almost 50 percent to 14.9 million carats, De Beers posted a negative EBITDA of US$113 million, highlighting the disconnect between stronger output and subdued demand.
For Botswana, whose economy remains heavily dependent on diamonds, the update offers a mixed picture. The company said it is making ‘significant progress’ in implementing commitments arising from its new partnership agreements with the Botswana government.
De Beers Executive Vice-President for Diamond Trading, Paul Rowley, said there were encouraging signs emerging from key consumer markets.
‘We are starting to see some more encouraging signals as our actions gain traction,’ he said, citing stronger natural diamond demand among independent United States retailers, firmer polished prices and growing support for natural diamond marketing under the Luanda Accord. However, he warned that the war in the Middle East and competition from synthetic diamonds remain significant near-term headwinds.
The company also said Anglo American continues to make ‘meaningful progress’ in discussions with parties interested in acquiring its shareholding in De Beers, although the process remains commercially confidential.