ALROSA, the world's largest diamond mining company, reported that total sales of rough and polished diamonds in April 2020 amounted to $15.6 million, compared with $147.8 million in March.Such a dramatic decline in indicators is due to the decision of the company to virtually stop selling rough and polished diamonds as governments across the globe were taking active steps to prevent the spread of the coronavirus while ALROSA remained committed to its price over volume strategy.
The revenue from rough diamond sales to third parties amounted to $13.1 million. The company sold polished diamonds worth $2.4 million.
ALROSA’s total rough and polished diamond sales in January–April 2020 amounted to $919.8 million. From January to April, rough diamonds were sold for $894.4 million, polished diamonds – for $25.4 million.
Evgeny Agureev, Deputy CEO of ALROSA, commented: “Restrictions imposed to fight the coronavirus and a decline in the demand for diamond jewellery have minimised the trade in rough and polished diamonds across the world. In response to the situation, we have offered to our clients an option to buy the amounts of rough diamonds scheduled for April on a later date. Our customers have welcomed this opportunity. In the current environment, market players have to address the overstocking issue in midstream and act in line with the actual condition of the cutting sector. This is the tactics we adhere to.
Nevertheless, one should bear in mind that the challenges and restrictions faced by the market and affecting both operations and demand are of a temporary nature. We deal with a rare and limited natural resource, and consumers attach a high emotional value to natural diamonds. Like many other market players, we expect to see an upward trend in demand for diamonds as early as in the beginning of Q3.”
Victoria Quiri, Correspondent of the European Bureau, Rough & Polished, Strasbourg
