On December 9, ALROSA’s management, headed by the President Andrey Zharkov, held a meeting with long-term clients to summarize the preliminary results of 2015 and discuss current diamond market trends.
The meeting attendees discussed the practice of supply under longterm contracts. Andrey Zharkov noted that long-term contracts will remain the cornerstone of the Company’s sales policy. Such a diamond sales system provides the Company and its clients with stable rough diamond supply and protects from market fluctuations, which is particularly topical in a weakening market.
Considering the market conditions, throughout the year ALROSA followed a conservative sales policy, having cut down the prices and rough diamond sales volumes. According to experts, rough diamond demand is showing signs of recovery, and market stabilization can be expected in 2016.
The attendees emphasized the necessity to implement generic marketing programs in order to stimulate demand for polished diamonds in the medium term. For this purpose, in 2015, the largest global diamond mining companies, including ALROSA, established the Diamond Producers Association (DPA). The Association is expected to submit the first draft marketing strategy in the second quarter 2016.