March 31, 2021 – ALROSA, being committed to supporting the established rough diamonds market balance, decided to move its April trading session to the third decade of the month.
Initially the forthcoming session under long-term agreements was scheduled to start on April 12.
‘We are glad to see the continuing recovery of the industry with our clients expressing sustainable interest in purchasing our goods. However, in our view it is very important to keep the rough diamonds supply and demand balanced under current circumstances. To maintain the market balance and avoid excessive stocks accumulation, clients should have ample time to process and sell the goods they have purchased earlier. This is why we decided to shift our forthcoming trading session by one week from the initial schedule, so it will start on April 19, 2021,’ – commented Evgeny Agureev, Deputy CEO of ALROSA.
In general, diamond sales under long-term contracts account for about 70% of ALROSA’s total revenue. Trading sessions are usually held about once a month. Apart from them, ALROSA also arranges spot market sales, auctions and tenders.
Seeing market resilience and balance as a priority after the diamond trade slump in Q2-Q3 2020 caused by COVID-19, ALROSA since July 2020 provides its clients with a maximum flexibility. Compared with a traditional practice that implies a mandatory allocation, the company provides its clients with an opportunity to request only the goods they need in order to ensure the market equilibrium and optimal inventories’ level.