Alrosa's sales were stunted in January as a result of supply constraints, which prevented the Russian miner from meeting brisk rough demand.
According to the company's report released Thursday, diamond revenues fell 24 percent year on year to $325 million for the month of March. Compared to the previous year, rough sales decreased by 25% to $315 million, while polished sales increased by 11% to $10,000,000. The total was higher than the previous month's total of $254 million, but lower than the previous month's total of $334 million.
According to Alrosa deputy CEO Evgeny Agureev, “January saw continuing strong demand for diamonds from midstream companies seeking to stock up after a successful holiday season sales across all the key markets.At the same time, sales have been capped by current production levels, similar to the situation seen in the second half of 2021.”
According to Agureev, revenue per carat increased "considerably" year on year as a result of changes in the sales mix and an increase in like-for-like rough prices, among other factors. Customers told that the company raised prices by between 5 percent and 18 percent during the month's trading season, indicating that sales volumes were significantly lower than in the previous year (2021).
The dynamic reflects a high level of jewelry demand at the consumer level, as well as a scarcity of raw materials. Many miners, including Alrosa, have been experiencing limited production and a lack of inventory, which has resulted in a spike in the price of rough ore.
Alrosa announced on Wednesday that contract customers would be able to bring their monthly supply allocations forward, allowing them to access the rough they require earlier in the month.
