RAPAPORT… Alrosa will not hold a rough trading session in October in an effort to avoid releasing too many goods during a fragile recovery in the diamond market.
The Russian miner will combine its October and November sales, it said Thursday.
“This will help to support a nascent supply-demand balance by servicing only real demand from the clients, as uncertainty persists, thus avoiding a risk of excessive concentration of supply over time,” the company explained.
Demand picked up at Alrosa’s August and September sales, but the company still allowed customers to buy only the goods they needed rather than forcing them to meet predetermined purchase obligations. Sales results and customer feedback indicate this was the right approach, Alrosa said.
August sales rose 19% year on year to $216.7 million as the company reduced rough prices to spur demand. In September, the figure grew 30% to $336 million.
“A ‘rhythmical’ offering of the goods gives our clients an opportunity to process the rough they have already bought and plan their rough purchase more precisely, while considering a persistent epidemiological and political uncertainty in some regions,” said Alrosa deputy CEO Evgeny Agureev.
Image: A 108-carat diamond Alrosa sold at a large-stone auction in New York in 2018. (Alrosa)
Alrosa Cancels October Rough Sale
The Bottom Line
- Alrosa will combine its October and November rough diamond sales to avoid oversupplying the market during a fragile recovery.
- The company limited customer purchases in August and September to actual demand, resulting in sales increases of 19% and 30% year on year, respectively.
- Alrosa reduced rough prices in August to stimulate demand and aims to maintain a steady supply rhythm to help clients manage inventory amid ongoing uncertainties.
More Stories
Gareth Penny Calls for Stronger Natural-Diamond Marketing
Industry must create emotive campaigns to connect with the next generation of consumers, he says.
Gem and Diamond Parure Takes Top Spot at Bonhams
Mouawad set sells for $78,200, below its $153,000 high estimate.
HRD Antwerp Opens Expanded Lab in India
Belgian prime minister inaugurates renovated Mumbai facility, marking an important step in the company’s growth, it says.
