Alrosa Sales Strengthen Amid Price Rise

RAPAPORT... Alrosa recorded its highest sales in five months as steady polished demand and a lack of rough supply boosted trading. Diamond revenue jumped to $410 million in June, up from $31.3 million during the coronavirus crisis a year earlier, the Russian miner reported Friday. Sales rose 12% versus May 2021."Diamond jewelry [is enjoying] strong demand across all the key markets, while rough-diamond stocks [in] the Indian midstream segment are kept low," said Alrosa deputy CEO Evgeny Agureev. "At the same time, miners' rough stocks [have] hit...rock-bottom levels as supply structurally dropped at a number of assets."The company raised prices of 1-carat rough and larger by around 4% to 5% for the sale, and implemented gentler increases for smaller goods, market insiders said last month. Alrosa did not comment on the specific changes, but said its rough-price index had recovered this year to pre-pandemic levels.The rough market faces a long period in which supply will not be enough to meet demand, Agureev added. "Alrosa does its best to ensure the sustainability of the whole diamond value chain," he said. "We maintain a balanced approach to prices and volumes, supporting the long-term stability of the market."Rough sales stood at $374 million in June, compared with $24.8 million a year earlier. Polished revenue leaped to $36 million from $6.5 million. The month's polished figure included proceeds from the sale of the rectangular-cut, D-color, internally flawless Spectacle diamond, which went for $14 million at Christie's in May.For the first six months of the year, diamond revenues soared to $2.34 billion from $991.1 in the same period of 2020. Rough sales hit $2.23 billion, up from $955.3 million, while polished sales rose to $106 million, compared with $35.8 million a year before.Image: A rough diamond. (Alrosa)