ALROSA Sells $4.17B Rough Diamonds in 2017, Lower Avg. Price Dents Revenue

Rough Market
11/01/2018 12:34

According to preliminary figures released today, ALROSA’s rough and polished diamond sales for the year 2017 amounted to US$4.27 billion, a 5% decline from the US$4.49 billion in overall sales in 2016 despite an estimated 5% increase in rough diamond production. The Russian mining giant provisionally sold $4.17 billion in rough diamonds compared to $4.34 billion in 2016. They sold US$96.9 million in polished diamonds on the year. For the month of December alone, ALROSA sold $228.3 million in rough diamonds, representing the lowest month of sales for the year, but a 24% increase year-over-year from the $173 million in rough sold in December 2016. Polished diamond sales for the month totalled US$9.5 million, a 188% jump from the $3.3 million sold in the same month a year earlier. In December 2017 overall, the ALROSA Group sold $237.8 million worth of rough and polished diamonds.

“In 2017, rough diamond demand was fairly stable, market activity was in line with the seasonality and our expectations", said ALROSA Vice President Yury Okoemov. "The average price of rough diamonds sold by ALROSA was a little lower than a year ago, which is due to the changed sales assortment resulting from the increased demand for small-sized rough diamonds from Indian diamond cutting sector in the first half of 2017. We expect that in 2018 the diamond market will be balanced due to a moderate growth in the global demand for diamond jewelry and no major change in the global diamond mining."