Alrosa’s Q4 rough diamond sales grew 29% year-on-year to $1.14 billion owing to a seasonal uptick in demand and a robust performance across all segments of the diamond market.
“The recovery of end consumer demand in the key sales markets of the US and China continued into Q4 … the Christmas holiday season in the US kicked off with strong online sales as the pandemic pushed consumers to shop online. Another sustainable trend in the retail sector is the steady recovery of sales in mainland China, where travel restrictions make Chinese consumers spend more domestically,” Alrosa stated.
“India’s cutting and polishing industry increased diamond production … Large cutters started operating at 70-90% of their capacity, and the nation’s traditional Diwali celebration this year was shorter than usual. Diamond stocks in the cutting sector remained unchanged, which helped prices for polished diamonds to recover and stabilise at pre-Covid-19 levels as jewellery demand rebounded in the second half of the year,” it added.
Alrosa noted that by the end of the year, demand for rough diamonds was strong and stable, driven by a balanced sales policy of major diamond producers seeking to meet real demand, along with a seasonal uptick in demand and robust performance across all segments of the diamond market.
In early 2021, cutters and polishers are increasing their diamond production to 100% capacity in anticipation of stable orders in Q1 as jewellery businesses and dealers seek to replenish inventories they sold during the holiday season and due to market activity ahead of the Chinese New Year, Alrosa said.
Alrosa’s full-year total sales dropped 16% to $2,802 billion, including a 29% decline in rough diamond sales to $2.652 billion.
The company’s Q4 diamond inventories dropped 32% to 20.7 million carats from 30.6 million carats in Q3.