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ALROSA May Cut Diamond Prices Again as Orders Fall Short
Sep 2, 2015 2:05 AM
By Rapaport News
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RAPAPORT... Russian diamond miner ALROSA may cut prices again in the second half of the year after already lowering them by 6 percent earlier in 2015, chief financial officer Igor Kulichik said during a conference call with investors on September 1.
Customers cancelled half of the orders placed at ALROSA's trading session in July and it was considering another price cut because of slack demand. The mining company said on Tuesday ALROSA was stockpiling an increased quantity of rough diamonds rather than curbing production.
"Cutting production leads to a (relative) rise in costs, so we better grow the stock," Kulichik told the conference call, saying that higher than usual cancellations reflected a wider trend of falling diamond sales also affecting other producers.
ALROSA's diamond inventory has grown to 17 million carats from 14 million at the start of the year, the CFO said. |
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Tags:
Alrosa, Rapaport News
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