Miner keeps prices stable. ALROSA sold about $780 million worth of rough diamonds during its first two sales of the year as rough demand improved, a market source told Rapaport News. Prices in February were unchanged for the sixth month running, according to Rapaport records.
The Russia-based miner allowed its clients to reject up to 30 percent of goods at the latest tender without forcing them to pay a penalty or commit to buying the stones in the future, the source said. In January the rejection limit was 50 percent.
Clients in January bought well over the minimum they were required to purchase and demand sometimes exceeded supply for certain categories of rough, Rapaport News understands.
ALROSA declined to comment on the sales but confirmed prices were not adjusted.
“ALROSA kept rough prices stable in the February trading session. The company sees signs of a gradual recovery in demand for rough diamonds,” an ALROSA spokesperson said in an email March 2.
The outcome of the first two contract sales of 2016 puts the company on track to match its rough sales of $1.14 billion estimated by Rapaport News in the first quarter of 2015. The miner holds its so-called ALROSA Alliance contract sales every month, in contrast to De Beers which hosts 10 sights a year.
De Beers this week reported sales of $610 million at in its second sales cycle of the year, which includes the February sight and other sales and supply to partners.