In response to the Gem & Jewellery Export Promotion Council’s (GJEPC) request to address the current challenges confronting the global diamond industry, Alrosa has announced a temporary suspension of rough diamond allocations for the months of September and October 2023. This move comes amid concerns about diamond demand in foreign markets, which has caused disruptions in manufacturing operations and a reduction in resource allocation.
Alrosa‘s decision to cease rough diamond allocations demonstrates the company’s commitment to restoring the market’s supply and demand equilibrium. With the sector approaching the Diwali season, when many factories regularly shut down, Alrosa feels that this decision will help prevent overstocking.
Vipul Shah, Chairman of GJEPC, had earlier this month reached out to global mining corporations, voicing the Indian diamond industry’s worries about numerous major challenges hurting the diamond trade. Declining demand pressures, the influence of lab-grown diamonds (LGDs), polished inventory and production issues, economic downturns in the United States and China, geopolitical instability, changing consumer preferences, and losing confidence in natural diamonds are among them.
“We believe that exploring mechanisms to manage the supply and prices of natural diamonds through collaboration among miners can be instrumental in bringing the market back into balance,” Shah added. We respectfully urge your assistance in temporarily altering rough diamond supply to better line with current demand, which would help stabilize the sector and stimulate long-term growth.”
All industry participants, including diamond mining companies, cutting facilities, and jewelry merchants, have been urged by Alrosa to take a similar ethical approach to rough diamond procurement and sales. This collaborative endeavor aims to boost industry confidence and build partnerships among all stakeholders.
Alrosa stated in the letter that it is confident that this strategic measure would help to revitalize the diamond market by increasing the stability of every link in the diamond supply chain. The current supply-demand imbalance has caused concerns within the industry, and Alrosa is sure that only by combining the efforts of global diamond industry organizations will the necessary impact be created to benefit the market and all of its participants, both on the demand and supply sides.