Alrosa Sales Steady as Cutters Continue to Buy

RAPAPORT… Alrosa’s diamond sales remained stable in May as manufacturers continued to show demand despite challenges in the Indian market, the miner said Thursday.

Revenue from rough and polished goods stood at $365 million, down 9% from $401 million in April but higher than the $40.1 million the company reported during the peak of the coronavirus crisis a year earlier. This reflected strong appetite from the Indian midstream, which has maintained operations in the face of the country’s Covid-19 outbreak.

“Cutters and polishers [have] fully adapted [to the virus situation] and are able to process all available volumes of rough diamonds,” commented Alrosa deputy CEO Evgeny Agureev. “End demand for diamond jewelry remains robust in all key regions.”

The two largest diamond miners — Alrosa and De Beers — have seen strong trading since the start of the year as retail sentiment surged and manufacturers looked to fill inventory gaps. Sales slowed slightly in April and May because of a lack of rough supply, with prices across the market rising as a result.

Alrosa’s rough sales fell 10% month on month to $346 million in May, but jumped from last year’s $36.2 million. Polished revenues rose 6% compared with April to $19 million, and were well above the $3.9 million the company recorded a year earlier.

Meanwhile, jewelry sales for the entire US market rose 30% for the first four months of 2021 versus the same period of 2019, Alrosa added. In China, sales increased 10%.

Image: Rough diamonds. (Alrosa)