Russian diamond miner Alrosa said clients cancelled half of the orders placed during trading sessions in July, and it was considering a second price cut of the year because of slack demand.
The state monopoly's Chief Financial Officer Igor Kulichik said on Tuesday that Alrosa was stockpiling an increased quantity of the gems rather than curbing production.
"Cutting production leads to a (relative) rise in costs, so we better grow the stock," Kulichik told a conference call, saying that higher than usual cancellations reflected a wider trend of falling diamond sales also affecting other producers.
Alrosa's diamond stock had grown to 17 million carats, he said, from 14 million at the start of the year.
Kulichik added that the company, the world's top producer by output in carats, may cut prices again in the second half of the year after already lowering them by 6 percent earlier in 2015.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
