Russian diamond miner Alrosa saw its September sales of rough diamonds make a modest recovery after a slow summer, selling $256.5 million, which represents a 42% increase over the $180.2 million sold in August. The company acknowledged, however, that market demand for rough diamonds is still low, as this past month's sale was 27% lower than in September 2018, when they moved $331.6 million of rough goods. Adding $2.2 million in polished-diamond sales (-69% y-o-y), total sales for September were $258.7 million.
For the first nine months of 2019, Alrosa has sold $2.39 billion worth of rough diamonds, representing a more than 33% decline from the first nine monhs a year ago in which they earned $3.59 billion. Adding $36.8 million in polished sales (-50% from $74.1 million), Alrosa's total rough and polished diamond sales in January-September 2019 amounted to $2.42 billion compared to $3.66 billion a year ago.
“September sales were higher than sales in the three previous months," said Alrosa's new Deputy CEO Evgeny Agureev. "It is partly due to the traditional autumn market revival after the holiday period and a slight increase in demand from Indian cutters and polishers ahead of the Diwali festival," he explained. "The most noticeably increased sales of small-size rough diamonds. In addition, some sales from the August session, which started later than usual, moved to September." Agureev points out that "The market is still facing low demand for rough diamonds, though there has been a gradual recovery for some categories of diamonds. We still believe that it will take some time to get a balance between supply and demand.”
Agureev new Deputy CEO
Evgeny Agureev, who has been a director of the United Selling Organization of ALROSA (USO) since 2017, was just recently appointed as Deputy CEO of ALROSA. He will continue to lead the USO and oversee the sales unit. Since 2017, hehas also been a member of the ALROSA’s Executive Committee. In his new position, Mr. Agureev will continue to develop sales, improve their efficiency and transparency, and strengthen ties with long-term clients. Sergey Ivanov, CEO of ALROSA said, “Given the difficult conditions in the global diamond market today, Evgeny will continue to improve the efficiency of the entire supply chain of the company and look for new approaches to stimulating rough diamond sales, as well as to increase the level of interaction with the company's customers and expand the customer base.”