Sales at Alrosa fell 8% year on year to $266 million in May amid a continued slowdown in the Indian manufacturing sector, the Russian miner said Monday.
Rough-diamond sales declined 6% to $261.1 million for the month, while polished revenue plunged 52% to $5 million. May’s total figure is also down 17% from April, and is the lowest overall monthly sales result so far this year.
“We see the market entering its seasonal slowdown phase,” said Evgeny Agureev, director of Alrosa’s United Selling Organization. “The India cutting and polishing sector is still facing a challenge of financing, which holds back the growth in demand for diamond products. The retailers’ stock level remains quite high but keeps declining — this process will take some time.”
Inventory should even out as diamond production decreases, explained Agureev, noting that global output was expected to drop 4% in the first quarter.
Alrosa’s rough and polished sales slumped 31% to $1.59 billion for the first five months of the year combined, with rough revenue falling 31%, while polished sales plummeted 44%.
Image: Rough-diamond sorting. (Alrosa)