ALROSA Diamond Sales Decline by Design in May

Rough Market
11/06/2018 14:22

ALROSA's rough diamond sales of $277.5 million in May 2018 represent a significant step backwards from its $467.6 million in sales in May 2017 (-41%), and fell 30% compared to last month ($396.2 million), which the Russian miner says was part of a, "planned decrease in sales". Deputy General Director Yury Okoemov attributed the planned sale of lower volumes to, "a seasonal decline in the current production, mostly driven by mining suspension at some alluvial deposits in the first months of the year,” as well as pointing to the sale of inventories at the beginning of the year. Meanwhile, polished diamond sales more than doubled to $10.5 million from $4.5 million, bringing overall sales for the month to 288.0 million, a 39% drop from the same period a year ago. 

ALROSA’s rough diamond sales for the year thus far (January-May 2018) now stand at $2.256 billion, which by our calculations is about 4% more than the miner sold in the first five months of 2017. Total sales for the first five months of the year are now at $2.299 billion, including $43.3 million in polished diamond sales. Despite the decline in May revenues, Okoemov says, "We continue seeing good demand for almost all assortment of our diamond products."