Russia's Alrosa, the world leader in diamond production, sold $267 million of rough goods in November 2018, which represents a 14% increase compared to its October revenue derived from a much higher volume of sales, but is not ready to claim demand for small rough has rebounded. Sales of smaller and less expensive rough goods have tumbled throughout the industry in recent months, as a lack of financing and a devalued currency have slowed purchases of goods destined for manufacturing in India.
“Diamond sales in November were 13% higher by value and 25% higher by volume against October this year," said Deputy CEO Yury Okoemov. "This may be indicative of strengthening demand for low-cost small-sized rough diamonds, which has been declining over the past few months. However, it is too early to make final conclusions. We still see a lot of potential for the increase in demand for rough diamonds from the Indian diamond-cutting sector, which is still having trouble with access to credit."
Despite the improvement over last month, rough sales were still 18% off the pace of November 2017 ($326 million). The miner also sold polished diamond sales $7.4 million worth of polished diamonds in November compared to $8.4 million during the same month a year ago and $8.9 million last month. Alrosa's rough as well as total sales have climbed approximately 4% on the year thus far, as the miner has sold $4.1 billion in rough goods from January-November, compared to $3.9 billion during the same time frame last year. Total sales for the year are now at $4.2 billion.