Alrosa's August Sales Boosted by Strong Demand

RAPAPORT... Alrosa's sales jumped 41% year on year in August amid steady consumer demand, even as inventory shortages led to the lowest monthly sales since the start of the year.Diamond revenue surged to $306 million, up from $216.7 million a year earlier, when the market was just beginning its recovery from the coronavirus crisis, the miner said last week. Sales rose 68% compared to August 2019's figure of $181.8 million.However, August revenue was lower than in each of the previous seven months, reflecting a lack of inventory caused by lowered output during the pandemic. Earlier this month, Alrosa purchased more than 80% of rough available at a special tender by Gokhran - the Russian state gem and precious-metal depository - to supplement its stock. "This year, demand for rough diamonds remained strong despite the traditional summer slowdown at cutters and polishers," said Alrosa deputy CEO Evgeny Agureev. "Our total sales in carats were lower due to a lack of rough inventories available for sale. Going forward, we expect our supply of rough diamonds to stabilize as production recovers, enabling us to benefit from favorable market conditions. At the same time, the robust demand from end consumers combined with the persistent shortage of rough diamonds will support a positive price dynamics." Rough sales for August rose 47% year on year to $297 million, while polished revenue fell 32% to $10 million. For the first eight months of the year, diamond revenues soared to $2.98 billion, versus $1.24 billion in the same period of 2020. Rough sales were $2.84 billion, up from $1.18 billion, while polished sales increased to $131 million, after reaching $63.6 million the previous year.Image: Rough diamonds. (Alrosa)