Alrosa Announces a Second Extension to Supply Contracts

March 25, 2021 / www.idexonline.com / Article Link

(IDEX Online) - Alrosa has announced a second extension to existing three-year rough diamond supply contracts.It says the move will help buyers respond to ongoing market uncertainties as a result of the global pandemic.The state-owned Russian miner usually analyzes trading activity at the year end, to determine who will be on its long-term client list and what product mix they'll be offered.It said last October that the assessment would be postponed until March, and now it has announced another three-month extension."This decision allows for increasing the purchase history relevance after the pandemic-related pause in 2020 in order to use it for drafting an offer that would fully meet the clients' actual requirements," the company said."The adaptation of our supply to the real demand is aimed at ensuring support for an emerging supply demand balance."Diamond sales under long-term contracts account for about 70 per cent of Alrosa's total revenue."We are extending our existing long-term contracts and formalising our recent months' practice of working upon clients' requests without mandatory allocation of goods," said Evgeny Agureev (pictured), Alrosa's deputy CEO."This will allow us to support the real confirmed demand and maintain an equilibrium of the industry."

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