International

Alrosa posts strong recovery due to holiday sales

Revenue from rough diamonds increased by 29% year-on-year to $1.14bn

Alrosa has reported a sharp increase in sales in the fourth quarter of 2020 due to strong demand during the holiday season.

The company announced that revenue from rough diamonds has increased by 29% year-on-year to $1.14bn (£834bn) as a release of pent-up demand allowed the Russian miner to sell goods that had previously been unsellable earlier in the year.

During the Christmas period, diamond retailers in the US saw strong online sales.

The average selling price of rough diamonds dropped 38% year-on-year to $67 (£49) per carat, reflecting a larger share of small diamonds in the sales.

The second quarter of 2020 saw a drop in sales as the Covid-19 pandemic restricted trading throughout the diamond supply chain, with demand showing some improvement in the third quarter.

With sales returning to form, Alora has been able to lower its stockpiles to 20.7m carats as of 31 December, which is a decrease of 32% compared to the previous quarter.

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