Alrosa March Revenue Plunges

RAPAPORT… Sales at Alrosa fell 33% year on year to $377.1 million in
March, even as the rough market picked up after a weak start to the year. 


Rough-diamond proceeds were $369.2 million for the month, also 33% lower than
the figure the miner reported a year ago. Polished revenue dropped 12% to $8
million. However, overall demand has improved versus February, with total sales
up 9% month on month, the Russian miner said.


“The market is gradually stabilizing following soft demand
from cutting and polishing companies in the second half of [2018],” Alrosa CEO
Sergey Ivanov said Wednesday. “Demand for smaller-sized stones demonstrated a recovery in the first quarter. The sector is also gradually restoring the
balance between the rough-diamond inventories and rough-diamond purchase
volumes.”


In the first quarter, Alrosa’s rough-and-polished sales
slumped 37% to $1 billion. Revenue for rough plunged 38% to $987.9 million,
while polished fell 31% to $16.3 million. Demand is generally strong during the
first three months of the year, as dealers and retailers restock after the
holidays.


Alrosa is “cautiously optimistic” about sales in the second
quarter, Ivanov added, noting that despite difficulties, Indian manufacturers — a large
portion of Alrosa’s client base — have been gaining greater access to
funding.


Image: Rough diamonds. (Alrosa)