Empty Shelves: Alrosa Sales Slip to 2021 Low as it Battles Rough Shortage

By John Jeffay / September 12, 2021 / www.idexonline.com / Article Link

(IDEX Online) - Alrosa's rough and polished sales slipped again in August to a 2021 low of $306m (provisional).

The Russian miner has resorted to topping up its inventory with rough from the state-run Gokhran as it struggles with record low stockpiles.

"Our total sales in carats were lower due to a lack of rough inventories available for sale," the company said in a statement.

Total sales were $410m in June and $334m in July. Sales in Covid-hit August 2020 were $217m.

So far this year Alrosa has sold tough and polished diamonds totaling $2,976, compared to $1,234.7m for the equivalent period in 2020.

Evgeny Agureev, Alrosa's deputy CEO, said he was hopeful that the supply would stabilize, allowing the company to exploit robust demand.

"This shortage was partially offset by the sale of diamonds purchased for long-term customers at a Gokhran auction in July," he said.

"Going forward, we expect our supply of rough diamonds to stabilise as production recovers, enabling us to benefit from favourable market conditions."

Pic courtesy Alrosa

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