Alrosa Sees Signs of Recovery in Diamond Market

Alrosa believes both the rough and polished diamond markets are showing signs of recovery after a challenging few years, as supply becomes scarcer.

The Russian miner has already seen prices for its rough diamonds increase between 6% and 9% since the beginning of the year, it said Monday. The changes are most noticeable in the high-price segment, or the 2- to 10-carat range, which comprises approximately 80% of Alrosa’s production in terms of value.

The prices for those categories have increased for all three of the company’s trading sessions so far this year. However, while Alrosa first noticed growth in January, it saw more significant improvements in February and March, it said.

Overall, in the first three months of the year, Alrosa increased selling prices to varying degrees on almost half of its regular diamond assortment, it stated.

“Demand and prices for large rough diamonds and diamonds weighing over 3 carats stabilized last year,” said Alrosa CEO Pavel Marinychev. “In recent months, amid declining global production, the shortage of rare and large stones…has become increasingly noticeable.”

Global diamond production will fall below 100 million carats in 2026, its lowest level in 20 years, Alrosa said. There is also potential for further declines as existing deposits are depleted and production at less profitable mines is suspended. Last year, Alrosa paused production at several of its smaller projects, including its alluvial sites in the Anabar River Valley, and at Verkhne Munskoye, which houses the Zapolyarny and Magnitny open pits. Meanwhile, Rio Tinto’s Diavik deposit will reach its end of life Tuesday, while other Canadian deposits are also due to shut permanently this year.

Image: Rough diamonds. (Alrosa)