MUMBAI (Commodity Online): A four member delegation from Alrosa Co. Ltd, headed by vice president Mr. Yury Okoyomov is on an exploratory trip to India from 21st February to 26th February, 2010. The team has met up with the Gem & Jewellery Export Promotion Council (GJEPC) headed by chairman Mr. Vasant Mehta on 22nd February, 2010.
Mr. Okoyomov says, Having visited the Bharat Diamond Bourse (BDB) in Mumbai, jewellery manufacturing units in the city's SEEPZ export zone and diamond cutting and polishing works in Gujarat, Alrosa is of the opinion that India's diamond and jewellery processing and trading infrastructure are impressive. Also, we wish to foster closer ties between the world's largest rough diamond producer and one of the world's largest diamond processing centre.
Mr. stated, The Indian diamond industry is very happy with Alrosa's extremely responsible actions which have helped maintain the stability of the world's rough diamond markets. We look forward to closer cooperation with Alrosa in the future.
Following the meeting, Alrosa and GJEPC jointly stated that:
- While seven Indian firms have long-term contracts with Alrosa, some 47 Indian firms bought rough diamonds totaling $550 million - more than half the group's total exports - from Alrosa over 2009. Alrosa shares the GJEPC's concern over speculative trading in rough and plans to increase the number of long-term clients in the future in order to ensure a stable flow of rough to the market. There is, however, no fixed time-frame for this as yet.
- Russia's commitment to maintaining stability in the world's diamond markets is evident in that the Russian government has allocated $900 million towards the purchase and stockpiling of rough diamonds in 2010. Since global markets are showing healthy signs of recovery, Alrosa might increase its supplies to the market reducing sales to the State Fund. This way, rough diamond pricing would be more in tune with supply and not the product of speculation.
- While Alrosa will use some tendered sales to aid in price discovery, it firmly favours long-term contracts for the bulk of its rough supplies in order to maintain stability in the market.
- While Alrosa is watching the world markets very carefully and is closely monitoring parameters that might indicate a second recessionary dip, it has no plans at present to cut mining production.