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Alrosa Sales Slide in August
Sep 10, 2019 8:25 AM
By Rapaport News
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RAPAPORT... Alrosa’s sales fell 38% year on year to $181.8 million in August, as weakness in the market persisted.
However, the result was an improvement on last month’s
$170.5 million, the miner’s weakest figure since it began releasing data in 2016. It’s also the first
time since 2010 that August proceeds were higher than in July, Evgeny Agureev,
director of Alrosa’s United Selling Organization, noted Tuesday. Cutters and polishers began replenishing their stocks, supporting Alrosa’s sales during the month, he said.
“The diamond market is still experiencing headwinds from
both macroeconomic and industry-specific factors, which have an adverse impact
on the midstream,” Agureev explained. “There is also a seasonal slowdown
weighing on the summer sales.”
Rough-diamond sales decreased 36% to $180.2
million for the month, while polished revenue plunged 87% to $1.5 million.
Alrosa’s sales fell 35% to $2.16 billion in the first eight
months of the year. Revenue from rough stones dropped 35% to $2.13 billion for
the period, while polished-diamond sales slid 48% to $34.6 million.
However, the miner maintained a positive outlook for the rough
sector for the remainder of the year, as the oversupply in the market is easing.
“We are still expecting that after a significant decrease in
rough-diamond supply by major diamond producers since the beginning of the
year, the excess stock in the system is decreasing,” Agureev added. “This will
help to restore supply and demand balance, which should not take too long.”
Image: Polished diamonds. (Alrosa)
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Tags:
Alrosa, Evgeny Agureev, Rapaport News, United Selling Organization
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