Advanced Search

Alrosa Sees Summer Drop in Rough Demand

Aug 14, 2017 5:38 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

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
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.