In response to current challenges in the market, Russian diamond miner Alrosa has called off its rough diamond sales for September and October.
The company, which has been sanctioned by both the United States and the United Kingdom, did not respond to a request for comment.
“We believe that this approach is going to have a stabilizing impact by strengthening the market’s supply and demand balance,” said the note to India’s Gem & Jewellery Export Promotion Council (GJEPC) from Dmitry Amelkin, head of the company’s polishing division. “This will aid the prevention of overstocking especially with [Indian] manufacturers closed for Diwali.”
Alrosa also called on “industry participants from diamond mining, cutting, and jewelry retail” to take the same “responsible position.”
“Only through the combined efforts of the global diamond industry organizations will it be feasible to create the essential effect for the benefit of the whole market and its participants, both on [the] demand and supply side,” it added.
Industry players who have spoken to Alrosa have said that the miner plans to spend money on “generic” promotion efforts for natural diamonds in India and China. Alrosa had been a supporter of the Natural Diamond Council, the industry group that is responsible for “category-driving” marketing for diamonds, but resigned from the group in 2022, following Russia’s invasion of Ukraine.
Alrosa’s move comes in response to a request from Vipul Shah, GJEPC chairman, who asked both Alrosa and De Beers to cut back sales to the market.
“We kindly request your support in temporarily adjusting the supply of rough diamonds to better align with the current demand, which will help stabilize the industry and foster its sustainable growth,” Shah wrote.
Shah said the industry was suffering from “declining demand pressures, [the] impact of lab-grown diamonds, polished inventory and production challenges, economic downturns in the United States and China, geopolitical instability, changing consumer preferences, and eroding confidence in natural diamonds.”
De Beers has said it will offer its clients greater flexibility in their allocations for the rest of the year and will spend $20 million this holiday season promoting natural diamonds in the United States and China.
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