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Trade tensions not helping diamond sales, says Alrosa

Russia’s Alrosa says a clogged midstream market is showing signs of clearing but contributed to a “significant decline” in diamond sales in the first seven months of the year.
Trade tensions not helping diamond sales, says Alrosa Trade tensions not helping diamond sales, says Alrosa Trade tensions not helping diamond sales, says Alrosa Trade tensions not helping diamond sales, says Alrosa Trade tensions not helping diamond sales, says Alrosa

Staff reporter

The world's largest diamond miner said July 2019 sales of rough and polished diamonds totalled US$170.5 million, taking sales for the January-July period to $1,981.8 million.

"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 Evgeny Agureev, director of the company's United Selling Organization.

"This factor was exacerbated by a low availability of credit facilities experienced by the mid-stream, trade tensions between USA and China, and other factors.

"Alrosa's price over volume strategy offers more flexibility and accuracy when it comes to defining sales, hence holding back pressure on the market.

"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."