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Alrosa's suspension of rough sale is move to combat overstocking: GJEPC


Alrosa's suspension of rough sale has been welcomed by India's GJEPC as a positive move to combat overstocking.


Russia's state-controlled diamond miner last week confirmed that it had cancelled sales in September and October to stabilize a volatile market.


Vipul Shah, GJEPC chairman, said he'd approached a number of diamond miners too see if they would reduce supplies amid declining demand.He said: "We believe that exploring mechanisms to manage the supply and prices of natural diamonds through collaboration among miners can be instrumental in bringing balance 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 stabilise the industry and foster its sustainable growth."


Alrosa said it was it was striving to reverse the existing trend of diminishing demand. "Our solid and high-quality asset base and stable financial position allow us implementing such measures," it said in a statement.


Its sales have so far been unaffected by Western sanctions, but the G7 nations, representing 70 per cent of diamond consumption, are widely expected to announce restrictions to be implemented in the New Year.


Source: idexonline


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