RAPAPORT… Alrosa’s sales dropped 28% year on year to $242.8 million in
October amid weaker demand for smaller rough stones and a slowdown in the
Indian market.
Indian demand fell due to the depreciation of the rupee and
tighter bank credit for manufacturers, the miner explained. “A number of minor
bankruptcies” in India had a negative impact on the sector, while the period was also seasonally weak due to the Diwali festival, the company said.
Rough-diamond sales fell 28% to $233.9 million for the
month, according to Rapaport calculations, while polished revenue slid 18% to
$8.9 million.
The market is likely to improve from December onward, with
full-year sales value set to exceed last year’s, Alrosa said. Sales rose 6% to
$3.9 billion in the first 10 months of the year, with revenue from rough stones
up 5% to $3.8 billion for the period, while polished-diamond sales climbed 5%
to $83 million.
Image: Rough diamonds. (Alrosa)
Indian Weakness Dents Alrosa Sales
The Bottom Line
- Alrosa's sales dropped 28% year-on-year to $242.8 million in October, impacted by weaker demand for smaller rough diamonds and a slowdown in the Indian market.
- Indian demand declined due to rupee depreciation, tighter bank credit, and several minor bankruptcies among manufacturers, compounded by seasonal weakness during Diwali.
- Despite October's decline, Alrosa's sales increased 6% year-to-date to $3.9 billion, with rough and polished diamond revenues up 5%, and expects full-year sales to surpass last year.
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