Alrosa Diamond Sales Hit Four-Month High

RAPAPORT… Alrosa’s sales reached their highest level since July amid continued strong demand in the diamond-jewelry market.

The miner sold $334 million in diamonds in November, a rise of 8% over October revenue, the company reported last week. However, the figure was 14% less than the same month last year, when manufacturers began replenishing stock in anticipation of holiday shopping, following a long coronavirus-related slowdown.

Rough revenues fell 17% year on year to $310 million, while sales in the polished division jumped 46% to $24 million. Rough sales encompass the company’s monthly trading sessions for contract clients, as well as tenders and auctions of 10.8-carat stones and larger.

“End demand for diamond jewelry in the key markets keeps growing at a double-digit rate in the fourth quarter, driven by the unleashing of pent-up spending and higher confidence among the main consumer groups,” said Alrosa deputy CEO Evgeny Agureev. “Market players see increased demand for wedding jewelry and expect this trend to continue unabated in 2022. Midstream inventories are currently at low levels due to the limited availability of raw materials supplied by mining companies and continuously strong consumer demand.”

The company’s diamond revenues soared 72% year on year to $3.92 billion in the first 11 months of the year, reflecting the recovery from last year’s slowdown. Rough sales rose by 71% to $3.74 billion, with polished up 82% at $179 million.

Image: An automated diamond-sorting center in Mirny. (Alrosa)