How Russkiye Samotsvety is coping with the current downturn

One of the key issues facing most Russian companies today is the need for an objective assessment of the new consumption decline due to the quarantine, as well as making forecasts for a way out of it. According to a RBC-Petersburg’s study made in June...

Yesterday

Global rough diamond sales down 80-90% in value in Q2 –Zimnisky

The COVID-19 pandemic, which is spreading across the globe, having originated from China’s Wuhan has left diamond traders and buyers at sixes and sevens. Traditional diamond tenders were cancelled around March as governments imposed travel restrictions...

27 july 2020

Indian diamond and polishing industry requires forward integration - Dinesh Navadiya

Dinesh Navadiya is now the Regional Chairman (Gujarat Region) of The Gems & Jewellery Export Promotion Council (GJEPC) of India for the 3rd term. He is also the Director on the Board of the Gem & Jewellery Skill Council of India (GJSCI)...

20 july 2020

GJEPC will focus on demand generation for diamonds and jewellery in the next two years

Mr. Vipul P Shah, Vice Chairman, GJEPC and also CEO & Managing Director of Asian Star Co. Ltd. has a rich experience in the diamond industry. His business acumen and professional conduct have contributed significantly in transforming a diamond manufacturing...

13 july 2020

The need for significant capital investments will be the main trend in the diamond mining industry in 2021-2030

The prospects of the diamond industry in the post-crisis period are discussed by the Rough&Polished correspondent with Sergey Mityukhin, Candidate of Geological and Mineralogical Sciences, Honored Geologist of the Russian Federation.

06 july 2020

ALROSA: unprecedented measures to attract buyers

23 july 2020
“ALROSA retains its commitment to support its clients and the diamond industry and announces a new set of unprecedented measures to offer additional flexibility to its rough diamonds’ buyers,” the company said on Wednesday in a press release.
For the trading session taking place from 27 to 31 of July, ALROSA decided not to set the mandatory buyout minimum requirements under long-term agreements that traditionally cover about 75 percent of its overall sales, the press release said. Moreover, the clients have an option to defer some volumes from July to forthcoming sales periods of 2020. This provides flexibility to diamonds’ buyers and will help them to optimize their purchasing according to production and sales plans.
In April-June ALROSA implemented a set of measures to support its clients and the entire market. As part of these, the company’s clients could defer initially allocated volumes to the later months of the year. As a result, the volumes allocated for the second half of 2020 grew by nearly one third from historical levels. Having considered the situation, ALROSA decided to reduce by 50 percent on average (in carats) mutual obligations for the seller to supply and for buyers to purchase rough diamonds starting from August. This gives the company’s clients an additional flexibility.
“Jewelry sales show first signs of recovery after some counter-pandemic measures were lifted. However, most cutting and polishing facilities still operate at reduced capacity, while the polished diamonds demonstrate selective demand varying from segment to segment. That is why we decided not to set the mandatory purchase limit for the July session, allowing our clients to buy the goods they need now and to defer certain volumes to the consequent sessions of the year. Starting from August session, monthly volumes to be purchased under long-term agreements will be reduced by 50 percent on average in carat terms,” said ALROSA Deputy CEO Evgeny Agureev. “This decision reflects, among others, the fact that the production guidance for this year is lower by around a quarter comparing to the previous year. Nonetheless, after the allocations’ revision our clients will be able to purchase additional volumes at auctions and tenders as well as to request extra goods. This will allow them to replenish their inventories selectively, being more flexible when responding to the market demand.”