May 29, 2020 – ALROSA keeps unprecedentedly flexible terms for its long-term customers for the third trading session in a row, aiming to support the diamond industry in this challenging period.
For ALROSA, maintaining the balanced state of the entire diamond value chain is a top priority. The company keeps unprecedentedly flexible terms for its long-term clients for June trading session. Just like during two previous sessions in April and May, the company allows its customers to refrain from buying, deferring June contract volumes to subsequent periods of the year.
Clients interested in purchasing diamonds in June may request the goods they need, getting all the required information and choosing rough remotely.
In order to keep the balance of the diamond chain during challenging times, ALROSA pursues ‘price over volume’ strategy, preventing oversupply by reducing sales volumes and strengthening the long-term potential of the diamond markets.
“The history shows that responsible approach to sales is the main way to accelerate market recovery after a crisis. Surely, under current market uncertainty maximizing short-term incomes at a cost of an overall market deterioration would be unwise. This is a third session at which we give our customers an opportunity to defer contracted volumes to the subsequent periods of the year. The regular feedback from our clients and overall situation in a midstream diamond segment show that this strategy is well proven”, commented ALROSA Deputy CEO Evgeny Agureev. “We are committed to the prudent sales policy and will use all available instruments to maintain supply and demand balance and normalize cutters’ level of inventories.”
ALROSA develops various measures to support its clients in these challenging times with COVID-19-related restrictions imposed on international travels. In May, the company held a digital tender with extended number of positions. After analyzing clients’ needs, ALROSA offered its long-term customers to choose from over 800 rough diamonds from 5-10 carats batches and significantly upgraded its digital trading platform.