ALROSA United Selling Organisation Director Evgeny Agureev commented that the miner’s ‘significant’ decline in rough diamond sales over the first seven months of this year was attributable to a number of factors including a sizeable inventory overhang in the midstream that had built up last year due to abnormally high demand growth, exacerbated by by low credit availability for the industry midstream and the US-China trade tensions, among other factors.
ALROSA announced that it had sold $164.6 million in rough diamonds along with polished worth $5.9 million in July. The miner said that this brought its total sales for this year (January-July) to $1.95 billion in rough and $33.1 million in polished sales.
Agureev said that ALROSA’s ‘price over volume’ strategy had helped alleviate pressure on the market by imparting more flexibility.
According to him, recent statistics on the net imports of rough to India and its net export of polished diamonds suggest that the diamond market is gradually coming back to a ‘supply-demand balance’.