Sep 17, 2020

Alrosa Allows Zero Purchase Obligation To Long-term Clients At September Sale

Alrosa has maintained flexible conditions during the September trading session for its long-term clients, aiming to nurture the green shoots of market recovery.

Confirming its commitment to a responsible and prudent approach to sales, Alrosa keeps unprecedentedly flexible conditions for rough diamond buyers during the forthcoming trading session, which will take place from 21st-25th September.

In August and early September, there was evidence of the revival of the demand for rough diamonds after several months of Covid-induced pause. Nevertheless, the market has not reached a balance yet. Together with a risk of a new wave of the disease, this means that all industry participants must remain cautious and responsible.

With this in mind, Alrosa maintains a zero buyout obligation during this trading session for Alrosa Alliance members similarly to August and July in order to avoid pressuring the market. Moreover, as the speed of the demand recovery varies across the product mix, the company, just like in August, gives its clients an opportunity to request only the goods they need. Long-term agreements traditionally cover about 70% of Alrosa’s overall sales.

“During the last month we clearly saw the growing demand for rough diamonds as cutting and polishing factories in India are ramping up,” said Evgeny Agureev, Deputy CEO of Alrosa, adding that the revived Chinese jewellery sales dynamics were encouraging.

“On the other hand, there is still an uncertainty related to the risk of the new wave of counter-Covid restrictions as well as to consumer sentiment. This is why we would be able to talk about the full-scale market recovery only based on the results of the key holiday season in the USA. In this situation we maintain our commitment to supplying the real demand and holding back the speculative trade,” he commented.  

Photo courtesy Alrosa