ALROSA Considering Price Cuts Following Drop in Demand

(IDEX Online News) – Russian mining company ALROSA is considering cutting diamond prices following a drop in demand at its latest sales week.

Reports from traders who attended the Sight week said that up to 80 percent of goods were rejected after ALROSA changed its policy and allowed clients to leave goods on the table.

According to Reuters, ALROSA’s CFO, Igor Kulichik, said the company was increasing its stockpile of goods rather than reducing production.

"Cutting production leads to a (relative) rise in costs, so we better grow the stock," Kulichik told a conference call, as reported by Reuters.

He said ALROSA may cut prices again in the second half of the year after already lowering them by 6 percent earlier in 2015.