Alrosa notes weakening of demand for diamonds

Alrosa has noted weakening of demand for diamonds in early 2015. At the same time, the company expects a deficit of rough diamonds on the world market since 2018, the first vice-president of Alrosa Igor Sobolev said.

"We haven’t revised the forecast of growth in diamond prices by 3% in 2015, it would be incorrect on the basis of the first two months. However, in January and February, we saw a weakening of the demand. Clients still have sufficient stocks. In January, we didn’t change the price, in February we slightly reduced them to support the market,"- he said.

According to Sobolev, the data of the market analysis indicates that in the last four years, all the major mining companies actively invested in the development. "Now the market doesn’t need a large supply, it would entail a reduction in rough diamond prices. Naturally, Alrosa as a major market player tries to behave responsibly, with an eye on global supply and demand balance to prevent the market fever," - said the first vice-president of the company.

The Bain’s study shows that after 2018 a significant part of the world's capacity will start retiring, said Sobolev. "For example, a large mine Argyle in Australia, which now produces 7 million carats, after 2018 will begin to reduce the volume. There is a natural depletion of deposits. And after 2018, an excess of the demand over the supply of diamonds is expected, the deficit will begin to form," - said the first vice-president of Alrosa.