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Alrosa Sees Summer Drop in Rough Demand

Aug 14, 2017 5:38 AM   By Rapaport News
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Alrosa sold $293.5 million worth of diamonds in July, reporting a fall in demand before the summer vacation period.

Rough-diamond sales came to $286.1 million, and polished-diamond sales stood at $7.4 million, the Russian miner said over the weekend.

“In July, there was a seasonal drop in demand on the market in the run-up to August holidays,” Alrosa vice president Yury Okoemov said. In June, the company recorded total diamond revenue of $365 million.

The first half of the year, meanwhile, saw good demand for rough amid rising prices, Okoemov added. Even so, first-half rough sales declined an estimated 4% as the miner sold off lower-value inventory than it had a year earlier.

While last year, Alrosa sold a lot of high-value inventory that had accumulated in the 2015 downturn, its stock this year consisted of smaller and lower-quality diamonds that had built up due to India’s November 2016 demonetization policy, which led to a drop in demand from Indian manufacturers.

In the first seven months of 2017, Alrosa’s total rough and polished revenue stood at $2.79 billion, with rough sales at $2.73 billion and proceeds from polished diamonds amounting to $62.3 million.

The results came out as rescue teams continued to hunt for eight miners missing after a flood at the company’s Mir mine in Russia’s Yakutia region. The August 4 accident occurred when water rushed into the underground facility following a sharp deterioration in mining and geological conditions, Alrosa said at the time. Russian federal authorities are looking into whether there were violations of safety rules at the mine.
Tags: Alrosa, mining, Mir, Mir mine, Rapaport News, Rough Diamonds, rough sales
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