ALROSA reported a 60 percent jump in diamond sales to $365.4 million in January as manufacturing in India showed signs of a turnaround.
India’s diamond trade slowed in the last two months of 2016 as the government invalidated INR 500 and INR 1,000 notes, snapping liquidity. Rough producers, including ALROSA, suffered from the resultant weaker demand from smaller and medium-sized cutters, with ALROSA acknowledging the decline in December.
As expected, January “demonstrated effective demand for rough diamonds in almost all market segments,” said Yury Okoemov, ALROSA’s vice-president.
“The diamond cutting sector in India is obviously coping with the problems caused by the currency reform in this country somewhat faster than expected. We still remain cautiously optimistic about activity in the small-size, low-cost rough diamond segment,” Okoemov added.
January revenue from rough diamonds stood at $358.2 million, while polished sales were pegged at $7.3 million.