The management of ALROSA held an annual meeting with the Company’s long-term customers in order to discuss with them the preliminary results of 2014 and share views on the diamond market perspective.
The attendees agreed that the long-term supply practice used by ALROSA since 2009 has proved its efficiency. Such contracts guarantee stable supplies of rough stones, provide a hedge against diamond prices volatility and enable both the Company and its clients to do long-term business planning.
From 2015 ALROSA will embark on a new three-year contract period. By the end of 2014 the Company intends to complete signing long-term supply contracts with its customers for the new term.
Supply under long-term contracts will continue to be the core of ALROSA’s sales policy, as the Company plans to sell about 70% of rough diamonds on such terms. ALROSA has created a well-balanced system of distribution to the largest players in the diamond business, in particular, diamond manufacturers and jewellery retail companies.
The participants also discussed recent trends on the diamond market. Primarily, this is customers’ increasing interest to the origin of diamonds that is the result of insufficient transparency of the diamond industry and, also, the development of innovative technologies of laboratory synthesis of gem-quality diamonds. ALROSA’s customers agreed that joint efforts were needed to enhance the reputation of the industry in the eyes of end consumers. In this context, the clients spoke in praise of ALROSA’s efforts to exchange information with industry organizations on a regular basis, and implement responsible business practices in its long-term supply contract practice.