(IDEX Online) - Alrosa bought stockpiles of diamonds from the Russian government in a highly unusual bid to replenish dwindling inventory, ahead its current contract sale.
A special auction was held last week by Gokhran, the state repository of precious gems and metals. Alrosa bought 70 per cent of the diamonds offered for sale.
The miner has been warning of "a long period of supply deficit" in the rough market as demand remains high, mid-stream stocks run low and miners' inventories hit rock bottom.
But is warning that cautions that the Gokhran diamonds will not be enough to fully plug the gap.
"Even with this step we will be able to satisfy only some of the demand at the upcoming session," said Evgeny Agureev, Alrosa's deputy CEO (pictured).
"The government takes a very responsible approach to selling diamonds from Gokhran and only offers them against real demand.
"These diamonds are what the market needs right now, and they will soon move on to the cutting and polishing stage, which we believe will somewhat contribute to balance the market."
Alrosa's current trading session began on Monday....