The current crisis in the industry occurred due to a combination of several factors, the company CEO Pavel Marinychev noted. Alrosa sees first signs of recovery in the diamond market, CEO of the Russian diamond miner Pavel Marinychev said on the air with Russian media.
“We see that first feeble attempts of the market to recover have been observed recently. We see that cut diamond prices started growing in some categories for the first time over the last three years,” he said.
The current crisis in the industry occurred due to a combination of several factors, Marinychev noted. The demand for jewelry spiked, followed by introduced restrictions on Alrosa, while global diamond producers started buying such products to their stocks.
“The dramatic spike of the market demand plus expectations of a raw diamond deficit to occur, these two factors lead to purchases to their stocks by all global brands, global leaders of the cutting industry,” the top manager said. “Then the demand declined rather sharply; it reached its balanced level,” Marinychev added. At the same time, prices for jewelleries with diamonds are declining globally since 2023, which prevents the sale of accumulated stocks and results in the drop of raw diamond prices, he added.
Further, Alrosa expects the raw and cut diamonds market will recover earlier than 2027, CEO of the Russian diamond miner Pavel Marinychev said on the air with Yakutia domestic media. “Everything will depend on how quickly the market will recover. Global analysts say such recovery is to be completed by 2027. Certainly, we do not expect quicker recovery,” the chief executive said.
Mining at less profitable assets of the company is being suspended in the “hot mothballing” mode, Marinychev noted. “If the market starts recovering, we will be able to restore operation of these performance units quite quickly,” he added. Alrosa suspended mining on placer deposits in the Anabar River valley in Yakutia from April 1.
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