Due to a seasonal factor, demand for rough diamonds experienced a subtle decline in March as compared to January and February, according to Yury Okoemov, ALROSA Deputy CEO cited by Interfax.
“However, the results of the trading session in March are good, and the first quarter can be assessed as positive,” he added. “Broadly speaking, the outlook for the year is still positive, we expect a stable demand and prices in sync with seasonal variations”.
“In the first quarter, ALROSA was pro-active selling goods from the stock and approached an average normalized level. Till the end of the year, stock fluctuations are possible, which is caused by production seasonality”, Okoemov said.
ALROSA’s average normalized stock level is 13-14 mn carats. The evaluation was carried out by the UBS bank following the results of the meeting with the representatives of the diamond mining company at the beginning of the year.
In early 2018, there were 18.2 mn carats in ALROSA’s stock, as the company’s management claimed. ALROSA took advantage of the favourable economic situation on the market in early 2018 for selling some part of the stock.
The results of the sales in March will be published on 10th April.