Alrosa Sales Surge in March

RAPAPORT... Alrosa's sales grew last month as manufacturers continued to restock inventory amid rising consumer demand in the US and China."Jewelry sales results at key markets, including the US and China, indicate persistently high demand from end consumers," said Alrosa deputy CEO Evgeny Agureev. "Alrosa retains its commitment to a prudent sales strategy, aimed at keeping the industry balance through supplying real demand. March sales were in line with our expectations." Diamond revenues more than doubled to $357 million year on year, from $152.8 million during the same period in 2020. Sales also benefited from a favorable comparison, as restrictions on travel and Covid-19 uncertainties in March of last year led to a steep decline in demand. Rough sales for March 2021 grew to $345 million versus $148.7 million the previous year, while polished sales nearly tripled to $12 million.While overall revenue for the month rose year on year, it slipped slightly from February's total of $361 million, reflecting a drop in the miner's supply. However, it was still the third-highest monthly total Alrosa has reported since March 2018."Polished-diamond stocks in the global pipeline are at a comfortable level, while rough diamond stocks are approaching low levels," Agureev added.Alrosa raised rough prices by around 4% to 5% on average for the March contract sale, with a focus on 1-carat rough and larger, sources told Rapaport News. The company maintained its policy of allowing customers to refuse goods at the sale. However, many clients went ahead with purchases to ensure a strong allocation of goods in the new contract period, which was due to go into effect on April 1, a source said. Alrosa later delayed the implementation of the contract until the end of the second quarter to give it more time to assess demand. Diamond revenues for the first quarter increased 28% year on year to $1.16 billion. Rough sales were up 28% at $1.13 billion, with polished climbing 43% to $33 million.Image: Rough-diamond sorting. (Alrosa)