Alrosa Clients Turn Down Rough Diamonds Buy Offer

A news report from Moscow Wednesday reports that diamond manufacturer Kristall has refused to purchase rough diamonds from Alrosa, after the miner declined to reduce its prices by 20 percent. Kristall was not alone, a number of buyers declined to purchase goods after the Russian diamond miner held on to its prices.

Buyers are saying 'no' to high rough diamond prices

According to a number of buyers, Alrosa told their clients that this is the time to “show support” and buy goods, despite their high prices. A number of buyers, speaking on condition of anonymity, told IDEX Online they have turned down Alrosa’s request.

“Why should we take the loss?” one manufacturer asked. Kristall, according to the RIA Novosti report, asked Alrosa to reduce prices by 20 percent. In response, Alrosa offered the polisher to reduce its purchase by 20 percent.

Another of Kristall’s suppliers, De Beers’ Diamond Trading Company (DTC) was in a similar situation. The DTC, which buys some of its rough from Alrosa, declined to buy goods from Alrosa due to high prices. A number of DTC Sightholders noted that the Russian goods were clearly missing from their allocations a couple of Sights ago.

BHP Billiton clients brought a sharp reduction in BHP’s Spot Tender in September, and premiums in the secondary market have eroded completely in the past couple of months. They are now at negative values.