ALROSA sales down 80% in July, urgently seeks supply and demand balance
Russian diamond giant ALROSA said today sales of rough and polished diamonds in July amounted to $35.8 million, down 80% from $170 million it booked in the same month in 2019.
Evgeny Agureev, Director of the United Selling Organization ALROSA, blamed high supply and other factors.
“A significant decline in diamond sales was attributable to a number of factors including a sizable level of diamond inventory overhang in the midstream built-up last year on abnormally high demand growth," said Agureev. "This factor was exacerbated by a low availability of credit facilities issue experienced by the mid-stream, trade tensions between USA and China, and other factors."
Agureev said the company would continue doing everything needed to reach the market supply and demand balance as soon as possible.
The company said it has extended financing to favored clients.
Agureev said there are some signs of improvement.
"Recent statistics on the net imports of rough diamonds to India and net export of polished diamonds from this country suggest that the diamond market is gradually coming back to supply-demand balance. In July, we successfully auctioned +10.8 carats’ diamonds in Israel and Belgium. We also sold expensive rough on spot. As a result, the average realized price of gem-quality diamonds in July increased by 9x compared this year's average," he said.