ALROSA Considers Long-Term Supply Contract with Signet

ALROSA, Russia's diamond monopoly, could sign a long-term contract with Signet, which owns a network of jewelry stores in the United States and United Kingdom, an ALROSA representative told Interfax, Rapaport reports.
ALROSA's new three-year contract period begins in 2015. The company plans to raise the number of long-term clients in that period to more than 50. "And ALROSA will be taking previous experience and volumes of work with these clients into consideration," the company said.
When signing long-term contracts, ALROSA focuses on major diamond cutting firms and jewelry retailers as the most stable and predictable clients, the company said. ALROSA needs to expand its client base in connection with forecast growth in output and the sales of some of its diamond stocks.
In the past, ALROSA has signed long-term contracts to supply rough diamonds to two major jewelers, Tiffany and Chow Tai Fook.
“ALROSA might be interested in signing contracts with either premium jewellery brands or large jewellery producers focused on medium-priced products,” the company’s representative noted.
ALROSA currently has 41 long-term clients including 7 Russian companies and one Belarusian producer. Vast majority of the clients are Indian, Belgian, Israeli and Chinese jewelers and dealers. Similarly to De Beers’ sightholders, ALROSA’s long-term clients (forming ALROSA Alliance) make regular purchases of rough diamonds during monthly trading sessions, at prices set by the company’s council based on the global market environment.
Signet is the largest specialty jewellery retailer in USA, which owns Kay and Jared brands and UK-based brands Ernst Jones, Leslie Davies and H.Samuel.