Image credit: ALROSA
“In August and early September, there were evidence of the revival of the demand for rough diamonds after several months of COVID-induced pause,” said ALROSA in a press release issued yesterday. “Nevertheless, the market has not reached a balance yet. Together with a risk of a new wave of the disease, this means that all industry participants must remain cautious and responsible.”
Due to this ALROSA will allow its customers from ALROSA ALLIANCE to reject purchases of rough diamonds allocated under their contracts, which, as the company emphasized, is done to avoid pressure on the market.
“Moreover, as the speed of the demand recovery varies across the product mix, the company, just like in August, gives its clients an opportunity to request only the goods they need,” the press release further said.
“During the last month we clearly see the growing demand for rough diamonds as cutting and polishing factories in India are ramping up and revived Chinese jewelry sales’ dynamics is encouraging. On the other hand, there is still an uncertainty related to the risk of the new wave of counter-COVID restrictions as well as to consumer sentiment. This is why we would be able to talk about the full-scale market recovery only based on the results of the key holiday season in the USA. In this situation we maintain our commitment on supplying the real demand and holding back the speculative trade,” commented Evgeny Agureev, Deputy CEO of ALROSA.
