Alrosa’s sales dropped 28% year on year to $242.8 million in October amid weaker demand for smaller rough stones and a slowdown in the Indian market.
Indian demand fell due to the depreciation of the rupee and tighter bank credit for manufacturers, the miner explained. “A number of minor bankruptcies” in India had a negative impact on the sector, while the period was also seasonally weak due to the Diwali festival, the company said.
Rough-diamond sales fell 28% to $233.9 million for the month, according to Rapaport calculations, while polished revenue slid 18% to $8.9 million.
The market is likely to improve from December onward, with full-year sales value set to exceed last year’s, Alrosa said. Sales rose 6% to $3.9 billion in the first 10 months of the year, with revenue from rough stones up 5% to $3.8 billion for the period, while polished-diamond sales climbed 5% to $83 million.
Image: Rough diamonds (Alrosa)