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ALROSA Sells $780M of Rough in Jan./Feb.
Miner Keeps Prices Stable
Mar 2, 2016 8:33 AM
By Rapaport News
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RAPAPORT... 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.
Sightholders said they see greater value from the De Beers
than ALROSA’s goods after De Beers reduced prices by an estimated 7 to 10 percent
in January. One ALROSA client said that premiums for the Russian goods had
increased in January but had returned to low-single-digit percentages on the
secondary market as large quantities became available at relatively high prices
in 2016.
“ALROSA sold too much in January, so people don’t find their
goods to be so attractive,” said one buyer. “Every Tom, Dick and Harry has
Russian goods and the same rough keeps reappearing on the market.”
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Tags:
Alrosa, ALROSA sales, De Beers, Rapaport News, rough, Rough Diamonds
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