Miners See Solid Rough Demand at January Tenders

RAPAPORT... Diamond miners reported steady sales at their January rough tenders as demand and prices grew at the start of the year.Alrosa garnered $10 million at a sale of stones above 10.8 carats, which it held in Dubai from January 19 to February 9. Some 39 companies - from Belgium, India, Israel, the United Arab Emirates (UAE) and the US - made purchases, the Russian miner said Monday."Demand for our rough began to recover late last year, and now remains stable," observed Evgeny Agureev, Alrosa's deputy CEO. "We sold over 80% of auctioned lots, and proceeds were good."Meanwhile, Diamcor noted an upward trend in demand and pricing for most assortments at its February tender, which also took place in Dubai during the first week of the month. The company sold $606,415 in rough from the Krone-Endora at Venetia project, its mine in South Africa, which recently returned to operation following a Covid-19-related shutdown. The tender of 2,028 carats achieved an average price of $299 per carat.The results followed Lucapa Diamond Company's sale of $5.9 million worth of rough from its Lulo mine in Angola, with 4,273 carats fetching $1,375 per carat. Prices at the opening sale of the year "continued to reflect the positive industry mood," said Lucapa managing director Stephen Wetherall. Under a partnership agreement, the miner sells up to 60% of rough from Lulo to manufacturer Safdico.The rough market was hot in January as manufacturers restocked after the US holidays. De Beers sold $650 million worth of rough at during the month, its largest sale since January 2018, while Alrosa brought in $421 million. The two large miners increased prices - De Beers by 4% to 5%, Alrosa by 6% to 7% - while Petra Diamonds and Mountain Province both reported an 8% price increase at their January tenders.Image: Diamonds from Alrosa's Verkhne-Munskoye mine in Russia. (Alrosa)