October 15, 2020 – ALROSA decided to maintain the intermittency of supplies and to pool October and November trading sessions together. This will help to support a nascent supply-demand balance by servicing only a real demand from the clients, as uncertainty persists, thus avoiding a risk of excessive concentration of supply over time.
Rough diamonds’ demand from the mid-stream was reflected in our August and September sessions’ sales results. The latter started on September 21st and continued till early October. As a result, the corresponding share of sales delivered in October will be reported in the October sales results together with the proceeds from October auctions.
“ALROSA maintains its commitment to the utmost prudent sales policy, supporting its clients as well as the market as a whole. We consider the market conditions and its real needs. In September, just like in August, we deliberately decided to supply the real demand and provided our customers with an opportunity to buy only the goods and volumes they actually needed. The sales results and our customers’ feedback indicate that this approach was a correct one. Taking into account that part of the September session’s sales moved to October, we decided holding October session together with the November one, having notified our clients in an appropriate way. 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. Understanding the risks of the speculative trade when the supply and demand balance just started to recover, we still plan to focus primarily on the confirmed demand”, said Evgeny Agureev, Deputy CEO of ALROSA.