Alrosa is allowing full flexibility at this week’s monthly rough-diamond sale, enabling long-term clients to delay purchases until later in the year due to the current weak market.
“The spread of coronavirus and counter-pandemic measures implemented around the globe have severely affected the diamond industry,” a spokesperson for the Russian miner said Wednesday 1st April in a statement to Rapaport News. “With this in mind, Alrosa supports its long-term clients with full flexibility for the April 2020 trading session, lifting mandatory buyout requirements.”
Clients may buy goods if they want, with Alrosa enabling remote diamond viewings complete with detailed certificates and images of the stones, the spokesperson added. Customers can use this option to order goods and have them transported using a specialist shipping firm. However, Alrosa expects most of the demand will be from its domestic Russian customers.
Unlike Alrosa, De Beers canceled its sight scheduled for this week because of travel and shipment restrictions in Botswana, where its 10 contract sales take place each year. De Beers is also allowing clients to defer 100% of purchases to later sights.
Alrosa holds 12 contract sales a year in Russia under its Alrosa Alliance program. The company will decide on its supply policy for future sales based on the state of the market.
Last month, the World Diamond Council (WDC) and six trade organizations in India, Belgium and Israel asked the CEOs of De Beers and Alrosa to consider offering complete supply flexibility. Alrosa responded by emphasizing the need for all parts of the industry to make joint efforts to handle the current challenges.