Alrosa Sales Nearly Wiped Out in April

RAPAPORT… Alrosa’s diamond sales plummeted 95% to $15.6 million in April, the lowest on record, as customers deferred purchases until the market improves.

Rough sales slumped 96% to $13.1 million, while polished revenues fell 17% to $2.4 million, the Russian company reported Tuesday.

“In response to the [coronavirus] situation, we have offered to our clients an option to buy the amounts of rough diamonds scheduled for April on a later date,” said Evgeny Agureev, Alrosa’s deputy CEO. “Our customers have welcomed this opportunity.”

Alrosa “virtually stopped selling rough and polished” in April amid the global fight against COVID-19 and its strategy of maintaining prices rather than selling large volumes, the company explained. Members of the diamond trade have focused on avoiding an oversupply in the midstream, it added.

“Nevertheless, one should bear in mind that the challenges and restrictions faced by the market, and affecting both operations and demand, are of a temporary nature,” Agureev stressed. “Like many other market players, we expect to see an upward trend in demand for diamonds as early as in the beginning of [the third quarter].”

Total sales fell 30% to $919.8 million in the first four months of the year, with rough revenues down 31% to $894.4 million. Polished sales rose 32% to $25.4 million, partly reflecting Alrosa’s acquisition of Russian manufacturer Kristall at the end of 2019.

Image: Rough diamonds. (Alrosa)