Editor’s Note
This article outlines ALROSA’s initiative to allow customers flexibility in diamond purchase schedules, a move aimed at promoting market stability. It comes amid a period of high demand for rough diamonds, driven by restocking needs across the jewelry supply chain.
In line with its approach of fostering long-term sustainable development of the diamond market, ALROSA gives its customers an opportunity to adjust their diamond purchase schedules under trading sessions.
The demand for rough diamonds in early 2022 as well as in the second half of 2021 was outstripping supply, as cutters were actively buying rough to restock and fulfill the orders placed by jewelers and retailers.
Given the primary importance of a balanced market and the need to meet the real-backed demand, ALROSA offers its long-term customers a new option to adjust supply schedules between trading sessions. As a result, holders of long-term contracts can buy rough diamonds from their allocations ahead of the schedule by shifting booked volumes to an earlier date.
Long-term contracts for a 3-year period with major jewelry holdings, cutters, traders, and consumers of industrial diamonds make up the core of ALROSA’s sales system and traditionally account for the largest part of the company’s turnover. ALROSA makes special efforts to guarantee responsible business practices across the diamond production chain. All of the company’s long-term customers comply with ALROSA Alliance Guidelines on Responsible Business Practices, which rely on the Russian laws and regulations, key United Nations documents and best initiatives focusing on the industry-wide implementation of responsible business practices.