ALROSA Rough Diamond Sales Slow to $354M in June, $2.4B in H1 (-2%)

Mining and Exploration
11/07/2017 07:46

In June 2017, Russia's ALROSA Group sold $365 million worth of rough and polished diamonds, with rough diamond sales reaching $354.4 million and polished diamond sales $10.6 million, the company announced in a press release. The company's rough sales showed a significant value decline from the $468 million in rough sold in May. The volume of rough sold was not stated, but the value decline is a result of the company reducing stocks of smaller and cheaper stones. "In the first half of 2017, the Company cut down finished stock due to positive rough diamond market trends," said ALROSA Vice President Yury Okoemov. "The stock structure as at the start of the year, predominantly small-size, rather inexpensive goods, had a significant impact on the sales structure. We consider the existing rough diamond market environment to be stable, though we saw a seasonal slowdown by the end of June," 

For the first half of the year, January-June 2017, ALROSA's rough diamond sales amounted to $2.44 billion, an estimated 2.4% value decline from the first half of 2016. Polished diamond sales achieved $54.9 million. ALROSA's rough and polished diamond sales for the first half totalled $2.5 billion. As the company recently clarified in an IFRS conference call, “The Indian demand recovery helped us destock materially … the inventory accumulated by late 2016 contained mainly smaller stones unsold due to the reduced demand from India on the back of their monetary reform. Then, in Q1 2017, we successfully sold off this excessive stock. However, the average sales price was below the average annual level and down y-o-y.” Strong demand for rough continues.