Alrosa March Revenue Plunges

RAPAPORT... Sales at Alrosa fell 33% year on year to $377.1 million inMarch, even as the rough market picked up after a weak start to the year.  Rough-diamond proceeds were $369.2 million for the month, also 33% lower thanthe figure the miner reported a year ago. Polished revenue dropped 12% to $8million. However, overall demand has improved versus February, with total salesup 9% month on month, the Russian miner said. "The market is gradually stabilizing following soft demandfrom cutting and polishing companies in the second half of [2018]," Alrosa CEOSergey Ivanov said Wednesday. "Demand for smaller-sized stones demonstrated a recovery in the first quarter. The sector is also gradually restoring thebalance between the rough-diamond inventories and rough-diamond purchasevolumes." In the first quarter, Alrosa's rough-and-polished salesslumped 37% to $1 billion. Revenue for rough plunged 38% to $987.9 million,while polished fell 31% to $16.3 million. Demand is generally strong during thefirst three months of the year, as dealers and retailers restock after theholidays. Alrosa is "cautiously optimistic" about sales in the secondquarter, Ivanov added, noting that despite difficulties, Indian manufacturers - a largeportion of Alrosa's client base - have been gaining greater access tofunding. Image: Rough diamonds. (Alrosa)