In light of the Gem & Jewellery Export Promotion Council’s (GJEPC) request, made after a meeting of leading Indian diamantaires to tackle the current hurdles confronting the global diamond industry, Alrosa has announced a temporary suspension of rough diamond allocations for the months of September and October 2023. This decision comes amid concerns about the diminishing demand for diamonds in international markets, leading to disruptions in factory operations and a reduction in resource allocation.
The move to halt rough diamond allocations reflects Alrosa’s commitment to stabilising the market’s supply and demand balance. With the ongoing trend of declining demand, Alrosa believes that this decision will help prevent overstocking, especially as the industry approaches the Diwali season when many manufacturers traditionally shut down.
Earlier this month, Vipul Shah, Chairman, GJEPC had reached out to global mining companies, expressing the Indian diamond industry’s concerns on several key issues affecting the diamond trade. These include declining demand pressures, impact of lab-grown diamonds (LGDs), polished inventory and production challenges, economic downturns in USA and China, geopolitical instability, changing consumer preferences and eroding confidence in natural diamonds.
Shah said, “We believe that exploring mechanisms to manage the supply and prices of natural diamonds through collaboration among miners can be instrumental in bringing balance to the market. We kindly request your support in temporarily adjusting the supply of rough diamonds to better align with the current demand, which will help stabilise the industry and foster its sustainable growth.”
Alrosa has called upon all industry partners, including diamond mining companies, cutting facilities, and jewellery retailers, to adopt a similar responsible stance towards rough diamond purchases and sales. This collective effort aims to enhance confidence within the industry and strengthen relationships among all stakeholders.
In the letter, Alrosa said it was convinced that this strategic step will be instrumental in revitalising the diamond market by improving the stability of every link in the diamond supply chain. The recent supply-demand mismatch has raised concerns within the industry, and Alrosa is confident that only through the combined efforts of global diamond industry organisations can the necessary impact be created to benefit the market and all its participants, both on the demand and supply sides.