Alrosa's Sales Slump in May

RAPAPORT... Sales at Alrosa fell 8% year on year to $266 million in Mayamid a continued slowdown in the Indian manufacturing sector, the Russian miner said Monday. Rough-diamond sales declined 6% to $261.1 million for themonth, while polished revenue plunged 52% to $5 million. May's total figure isalso down 17% from April, and is the lowest overall monthly sales result so farthis year. "We see the market entering its seasonal slowdown phase,"said Evgeny Agureev, director of Alrosa's United Selling Organization. "TheIndia cutting and polishing sector is still facing a challenge of financing,which holds back the growth in demand for diamond products. The retailers'stock level remains quite high but keeps declining - this process will take sometime." Inventory should even out as diamond productiondecreases, explained Agureev, noting that global output was expected to drop 4%in the first quarter. Alrosa's rough and polished sales slumped 31% to $1.59billion for the first five months of the year combined, with rough revenuefalling 31%, while polished sales plummeted 44%. Image: Rough-diamond sorting. (Alrosa)