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Diamond Industry Dragged Into Slump as China Demand Ebbs Away

  • Traders face a `catastrophe' as De Beers prices seen too high
  • Inventories build in China as anti-graft crackdown bites
relates to Diamond Industry Dragged Into Slump as China Demand Ebbs Away
Photographer: Multi-bits/Getty Images

The China-fueled commodity slump that has torn through the world’s biggest raw-materials markets from iron ore to copper is now hitting the diamond industry. That’s bad news for Anglo American Plc.

Cooling demand for diamond jewelry in China, the biggest market after the U.S., is the latest sign that the country’s slowdown isn’t only a problem for industrial commodities. At the same time, customers of Anglo American’s De Beers unit, who trade, cut and polish the stones, say the producer is demanding more for the gems than many in the industry say they can afford to pay.