Alrosa Sales Strong in January

RAPAPORT... Alrosa's sales rose in January as manufacturers continued to restock inventory and consumer demand picked up in China and the US.Diamond revenues climbed 6% year on year to $430 million, with rough sales growing 8% to $421 million, the Russian miner said Wednesday. Polished sales dropped 39% to $9 million. While overall revenue was not as high as the previous month - manufacturers typically restock in December following preholiday polished sales to retailers - it was the second-highest monthly total Alrosa had reported since March 2018. This reflected continued positive demand in the rough market. The company is still maintaining its policy of allowing customers to defer 100% of their allocations.Alrosa raised rough prices by around 6% to 7% for the January contract sale, with steeper increases in larger categories than for smaller goods, sources told Rapaport News."January sales demonstrate an improving demand for jewelry at key consumer markets, namely in China and the US," said Alrosa deputy CEO Evgeny Agureev. "Lack of excessive diamond stocks at the midstream provided an additional support for rough-diamond demand, as cutters and polishers enjoyed an option to purchase diamonds based on their real requirements."Image: Rough-diamond sorting. (Alrosa)