Large-Stone Demand Drives Alrosa Sales

RAPAPORT... Alrosa's sales leaped20% year on year in the first quarter, as demand for medium-sized and largerough diamonds strengthened. Total sales for thethree months ending March 31 rose to $1.61 billion, of which $1.58 billion wasfrom rough sales and $23.7 million from polished. "In January to March, world markets saw higher demand formedium-and large-size rough diamonds compared to the same period last year," Alrosa deputy CEO Yury Okoemov said Tuesday. In March, Alrosa'ssales fell 1.3% to $559.5 million compared with the same period a year ago, asthe market showed signs of slowing after a buoyant first two months. Revenuefrom rough diamonds decreased 1% to $550.3 million, while polished salesslumped 27% to $9.1 million. Manufacturerstypically buy large quantities of rough in January and February to helpretailers fill their post-holiday inventory gaps. Even so, March sales werehigher than the previous month due to steady demand for larger stones. "There was a slight seasonal cooling off in demand in March," Okoemov added. "However, good resultsof special-size-diamond auctions - over 10.8 carats - ensured higher sales this month compared with February 2018."Image: Alrosa