Alrosa said it would maintain a zero buyout requirement for long-term clients at its August trading session, the same approach was used in July, to avoid putting additional pressure on the market. Sales under long-term agreements traditionally cover about 70% of Alrosa’s overall sales.
Despite the market starting to gradually recover and diamond trade starting to revive recently, the company believes that providing unprecedented flexibility to its long-term customers would speed-up the market’s return to supply-demand balance.
Evgeny Agureev, Deputy CEO of Alrosa, commented: “We were excited to see the green shoots in the market as it turned to recovery mode over the recent months. The global diamond trade started recovering though still below last year numbers, while midstream resumed operations at the reduced capacity.
“After being frozen for several months, diamond business started getting back to motion. However, it is obvious that the industry has not yet returned to the relatively stable state we enjoyed at the beginning of 2020. We should admit that we are at the very beginning of the market recovery, which is still [moderated] by a number of external factors including travel restrictions.”
During the August trading session, clients may review goods either remotely, getting detailed specifications and a videoconference with an expert, or by visiting Alrosa’s office.
© Alrosa