Alrosa to cut rough Prices by 8 to 10%

Moscow: Russian diamond miner ALROSA will lower rough diamond prices at its September trading session by 8% to 10%, Russian news agency Interfax reported Sept. 15, citing two unnamed sources involved in diamond trading. The company took the decision to reduce prices Sept. 14, according to the news wire.

“Preliminarily, the drop is 10%, in the framework of the market situation,” one of the sources was quoted as saying. Another source said ALROSA would lower prices by 6% to 13%.

“On average, it’s around 8%, for our assortment of + 9 to 8 grainers [between 0.65 and 2 carats]. This is not far from the drop at the De Beers [auction] in August.”

The selection limit is 50%, one of the sources said. This is higher than in August, when the limit fell to a low of 20%, but “still lower than when the market is in a normal state.”

ALROSA’s next auctions are scheduled to take place between Sept. 16 and Sept. 21, according to the report. ALROSA previously signaled it might reduce prices if demand for the stones remains weak in September.

Diamond producers this year have been struggling with weaker demand from key markets, including India and China.