Alrosa Sales Continue to Grow

RAPAPORT… Alrosa’s diamond sales rose in November to their highest level since January as customers continued to replenish their rough inventories ahead of the holidays.

Revenue from rough and polished goods jumped 36% year on year to $390.5 million, the Russian miner reported Thursday. Rough sales increased 33% to $374.1 million, while sales of polished almost tripled to $16.4 million, from $5.8 million a year earlier.

“Demand for rough diamonds from our key clients in November remained strong enough as they bring their stocks to the normal levels amid the seasonal growth in demand for diamond jewelry in the US and China,” said Evgeny Agureev, deputy CEO of Alrosa.

Alrosa’s sales were robust in January before collapsing in the spring and early summer when the coronavirus pandemic took hold. Rough demand has grown consistently since August as polished shortages emerged and manufacturers started preparing for the holidays.

Despite the second-half recovery, sales dropped 23% to $2.28 billion in the first 11 months of the year, with rough revenue falling 25% to $2.18 billion. Polished sales were up 86% at $98.4 million, reflecting Alrosa’s acquisition of diamond manufacturer Kristall in late 2019.

Image: Rough diamonds in a sieve. (Alrosa)