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ALROSA Sells $4.41B Rough In 2018; Sees Stable Demand Ahead

ALROSA reported that its total diamond sales in 2018 grew six percent year-on-year to $4.507 billion. Rough diamonds sales grew to $4.412 billion, polished diamonds sales stood at $95.3 million. The diamond miner also said that its December sales of rough and polished diamonds increased by 38 percent in a year-on-year comparison to $328.7 million. Rough diamond sales reached $323.7 million while polished diamond sales were $5 million.

"A six percent sales growth in 2018 was driven by both high demand for rough diamonds and positive price dynamics in the first half of the year. Market demand was strong in all rough diamond categories, and the traditional slowdown in demand in the second quarter due to seasonality was not registered this year,” said ALROSA United Sales Organisation Director Evgeny Agureev.

He added, “In the second half of the year, buying activity in the low-priced product segment significantly deteriorated due to weakening of the global market situation and both seasonality and de-stocking at a number of Indian midstream companies. At the same time, the company was actively engaged in optimising its stocks, which made it possible to increase sales in physical terms, despite a decline in production in 2018 by eight percent to 36.6 million carats.”

He went on to observe, ”In December, sales in value terms increased by 20 percent compared to November 2018, due to a flexible pricing policy against the background of seasonal renewed demand and replenishment of stocks by the companies in the cutting sector which took advantage of the pricing environment. Despite the cooling of the market in the second half of 2018, we expect that the final customers demand will remain at least stable.”

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