Alrosa decided to change dates for its trading sessions in July and August after having reviewed the current market situation. The July trading session, initially scheduled for 12th-17th July, will take place on 27th-31st July. This decision will support the company’s clients that expressed the potential interest in purchasing rough during this period.
In order to make diamond supply steadier, Alrosa is also moving its next trading session from 10th-14th August to the second half of that month, the dates for which will be announced later.
To balance rough supply with demand more effectively, the company has decided to idle its production of industrial diamonds of sieve classes under –3 and powders, for the next six months.
“Alrosa continues its responsible approach to sales and constantly communicates with its clients in order to thoroughly monitor the market and answer its needs. At the last three trading sessions, we provided our customers with unprecedented flexibility, including an opportunity to defer contracted volumes to later periods of the year. Today, when the largest end-consumer markets show signs of recovery, we answer our clients’ requests and amend our initial trading schedule that was formed last year,” said Alrosa deputy CEO Evgeny Agureev. “We believe that balancing supply with demand is the most important tool to normalise cutters’ stock levels.”
As a response to the situation in a global diamond industry caused by the coronavirus pandemic and related restrictions, Alrosa has implemented a number of measures to cut costs in 2020 that would lead to the annual diamond production of 28-31 million carats versus initial guidance of 34 million carats.
In another press release, Alrosa stated that it has resumed operations at Severalmaz processing plant after a temporary shutdown. A subsidiary of Alrosa, Severalmaz was idle since mid-May, and restarted on 8th July and will continue until 8th October, 2020. During this period, personnel will rotate in three shifts of 30 days each. The decision to increase shifts’ duration was made to prevent the spread of coronavirus infection. All staff will be tested for Covid-19 before arriving on site.
From 8th October, 2020 to 1st April, 2021 the processing at Severalmaz will be idled as previously reported, with the plant to be put on care and maintenance.
Credit: Alrosa