|
|
ALROSA Plans to Keep Rough Prices Unchanged
Jun 6, 2016 5:30 AM
By Rapaport News
|
|
|
RAPAPORT... ALROSA, which reported strong sales and profit in the first
quarter, expects to hold rough diamond prices steady for the rest of 2016 as
the miner anticipates a stable year.
“Regarding our
pricing outlook for 2016, we remain cautious, but do not expect any significant
falls in pricing generally,” said Igor Kulichik, ALROSA’s chief financial
officer (pictured), in a call with investors last week.
In the second
quarter that will end June 30, “we do not see any reason to move our prices
either way, up or down,” Kulchick added. “No one expects any major moves, and
we only have minor adjustments in prices between different categories, moving
them up or down but very insignificantly. We are not planning any major move in
prices across the board.”
ALROSA held
prices in March for the sixth straight month, keeping them unchanged even
in January when De Beers reduced
prices.
The
Russia-based miner’s revenue soared
37 percent and profit more than doubled in the first three months of the
year. Sales volume surged 34 percent to 12.1 million carats.
“In 2015, the
middlemen in the diamond pipeline – cutters and polishers – had a deficit in
their inventories of about $3 billion to $4 billion, which they are now
restocking,” Kulchick said. “That, effectively, explains our successful
performance in the course of the first quarter this year and our good sales
volumes. The second, third and fourth quarters this year will be more stable.”
Higher sales
enabled ALROSA to reduce its stockpile by about 4 million carats to less than
18 million carats, after lower demand last year led to an accumulation. The
company expects the inventory cut to continue in the second quarter, but without
any major drop, Kulchick said. There will be “no 20-percent reduction,” the
executive pointed out.
|
|
|
|
|
|
|
|
|
|
Tags:
Alrosa, Igor Kulichik, mining, Rapaport News, rough, Rough Diamonds, rough prices. prices
|
|
|
|
|
|
|
|
|
|
|