October 23, 2020 - To support its clients amid the persisting market uncertainty, ALROSA has decided to extend existing long-term rough diamond supply contracts through the end of Q1 2021. The list of long-term clients for the next contract period of 2021-2023 and the product mix to be offered to them will be determined in Q1 2021. This will enable the Company to factor in market developments in Q4 2020 in supply schedules.
Given the challenges faced by midstream diamond businesses globally in 2020 and our consistent efforts in supporting the industry's long-term balance, ALROSA extends the current 2018-2020 contract period through to March 31, 2021.
'Normally, we start analyzing the past trading activity of our clients, including both current and prospective members of ALROSA ALLIANCE, at the year end. However, in 2020 the industry saw an almost complete suspension of trade in Q2 due to the pandemic. In addition, the significant uncertainty still prevailing in the market makes it hard to plan long-term sales and purchases. Against this background, we decided to support our clients and reschedule the regular review of the ALROSA ALLIANCE Member List and product mix to the Q1 2020. This will give our clients a better opportunity to forecast their sales and purchases for the next contract period based on actual market needs,' said Evgeny Agureev, Deputy CEO of ALROSA.
ALROSA's sales policy is based on 3-year long-term contracts with major diamond cutters, dealers, vertically integrated companies and diamond tool producers with an established reputation. In general, diamond sales under long-term contracts account for about 70% of ALROSA's total revenue.
ALROSA's long-term clients and candidates for signing long-term diamond supply contracts with the Company form the ALROSA ALLIANCE community. Its members are committed to responsible business principles. Long-term contracts guarantee our clients monthly supply of the required product types and volumes, as well as an option to purchase extra volumes. Apart from this, ALROSA also arranges sales on the spot market, auctions and tenders.
This page was last updated on 23 October 2020 at 10.45
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ALROSA PJSC published this content on 23 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2020 07:54:04 UTC