Alrosa Rough Diamond Price Cut Refuted

Reports from Russia that Alrosa is considering a sharp cut in rough diamond prices are being strongly denied. Reports last week claimed that Alrosa’s new president has decided to reduce prices by up to 25 percent to meet current market prices.

Not all agree that the Russian diamond monopoly is going to cut prices, at least not that drastically. A number of sources close to Alrosa told IDEX Online that they do not expect a severe price cut.

One insider noted that the reports are either test balloons by the company to see what kind of reactions it gets in the market. Another option is that clients are making these statements in an effort to exhort pressure on the new president, Fyodor Andreyev, as he steps into office.

The Russian business daily Vedomosti quoted Maxim Shkadov, general director of Kristall, as saying that Alrosa is reportedly in the process of creating diamond parcels of certain quality, and the discount to the pre-crisis prices could reach 25 percent

Kristall is the largest diamond polisher in Russia, a Diamond Trading Company (DTC) Sightholder and one of Alrosa’s largest clients.

Alrosa did not return calls asking for a comment.