Alrosa Sales Rise as Demand Strengthens

RAPAPORT… Alrosa’s sales jumped in April as manufacturers continued to restock amid rising demand for diamond jewelry in key markets.

Revenues from rough and polished diamonds climbed to $401 million for the month, compared with $15.6 million a year earlier, reflecting a favorable comparison with the peak of the coronavirus crisis last year. Sales also rose 12% versus March, the Russian miner reported Wednesday.

Alrosa has seen consistently high sales figures since late last year as markets reopened and demand for both rough and polished returned. Appetite for rough has withstood the recent Covid-19 wave in India, with buyers continuing to make purchases in anticipation of shortages.

“In April, demand for diamond jewelry in the key markets continued to remain sustainably robust,” said Alrosa deputy CEO Evgeny Agureev. “Rough-diamond stock at the midstream remains modest, while the supply of rough diamonds gradually moves to a deficit state as global diamond production capacities [are] structurally reduced. Our April sales were well supported by the successful results delivered by auctions of high-quality, large rough, as well as by strong sales of polished diamonds.”

Alrosa nearly halted sales in April 2020 and allowed clients to defer purchases. The market showed a solid year-on-year recovery, with the company’s rough sales increasing to $383 million in April 2021 versus $13.1 million a year earlier, while polished soared to $18 million from $2.4 million.

Compared to March, rough sales gained 11%, with polished surging 50%.

Sales for the January-to-April period jumped 70% year on year to $1.56 billion. Rough sales were up 69% at $1.51 billion, while polished more than doubled to $51 million.

Image: Rough diamonds. (Alrosa)