Sourcing

Supply Constraints Impact Alrosa’s January Sales

SourcingFeb 15, 2022

Supply Constraints Impact Alrosa’s January Sales

The mining company said demand for diamond jewelry continues to be strong, but its sales are “capped by current production levels.”

2022_Alrosa Mir mine.jpg
A shot of the open-pit mine at the Mir pipe in Yakutia, one of Alrosa’s mining sites. The company sold $325 million in diamonds in January and said it is taking steps to get more rough diamonds on the market for future sales. (Photo courtesy of Alrosa)
Moscow—Alrosa’s second half 2021 supply problems have continued into 2022, impacting January sales and prompting the miner to take steps to get more rough diamonds onto the market.

The company announced last week its January sales totaled $325 million, $315 million in rough and $10 million in polished.

That is a 24 percent decline from $430 million in January 2021 but up 28 percent from $254 million in December, with Alrosa noting that some December sales shifted to January.

In a statement, Deputy CEO Evgeny Agureev said midstream demand for diamonds continued in January following a successful holiday season in key markets. One early report for the U.S. market indicated jewelry sales rose 32 percent year-over-year between Nov. 1 and Dec. 24 and were up 26 percent when compared with pre-pandemic levels.

But Alrosa continues to grapple with supply problems caused by a confluence of factors, including the increased demand for diamond jewelry in the last two years and mines that have faced various COVID-related obstacles. 

“Sales have been capped by current production levels, similar to the situation seen in the second half of 2021,” Agureev said. “Amid limited diamond supply globally, Alrosa continues with its measures to quickly respond to market demand by accelerating pre-sale diamond processing.” 

 Related stories will be right here … 

Alrosa also announced last week it will allow long-term contract holders, which constitute most of its customer base, the chance to buy rough diamonds ahead of schedule though still within their allocations.

The company said it again plans to buy diamonds at the Gokhran auction this month (Gokhran is Russia’s state-owned repository of precious gems and metals) and to hold additional tenders between trading sessions, making the rough diamonds most sought after by cutters available as soon as possible. 

“The first quarter of the year is traditionally a period of active rough diamond purchases, as cutters seek to stock up after a holiday season in retail,” Agureev said. “The high season of 2021 was one of the most successful ones in the entire history, as we see robust demand from our customers underpinned by real orders.”

The Latest

My Next Question webinar
Recorded WebinarsApr 12, 2024
Watch: What Jewelers Need to Know About Insurance

From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.

Evil Eye Charm with Turquoise Disc
CollectionsApr 12, 2024
Piece of the Week: Lionheart’s Evil Eye Gemstone Charm

The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.

The Jewelry Symposium scholarship winners 2024
Events & AwardsApr 12, 2024
The Jewelry Symposium Announces 4 Scholarship Winners

Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.

1-(3.18).JPG
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry Retail

With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.

SRK Empire and SRK House
Policies & IssuesApr 11, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Weekly QuizApr 11, 2024
This Week’s Quiz
Test your jewelry news knowledge with this seven-question quiz.
Take the Quiz
AGTA logo
Lab-GrownApr 11, 2024
AGTA Bans Lab-Grown Diamonds, Gemstones at GemFair

Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.

Steven Rosdal
IndependentsApr 11, 2024
Steven Rosdal, Co-Founder of Hyde Park Jewelers, Dies at 77

He is remembered for his charisma, passion, integrity, kindness, and wit.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Macy’s Herald Square store
MajorsApr 11, 2024
Macy’s Opens Books for Possible Buyout

The retailer also appointed two new board members, avoiding a proxy fight from a potential buyer.

AGS Conclave 2024 logo Austin
Events & AwardsApr 11, 2024
10 Can’t-Miss Sessions at AGS Conclave 2024

From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.

Sylvie Jewelry model
CollectionsApr 10, 2024
Sylvie Launches New Nature-Inspired Collection, ‘Tulira’

The bridal collection consists of 35 engagement rings and seven wedding bands.

Rolex Oyster Perpetual Deepsea in 18-karat yellow gold
WatchesApr 10, 2024
These Are Rolex’s New Watches for 2024

The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.

Levy’s Fine Jewelry diamond education
IndependentsApr 10, 2024
Levy's Fine Jewelry Explores Diamond History

The family-owned jeweler has a new education section on its website dedicated to the history of diamond cutting.

With Clarity NFL wedding bands
CollectionsApr 10, 2024
With Clarity Partners With NFL on Wedding Bands

The limited-edition men’s rings can be customized with one of 12 team logos.

Chrono24 watch inspection lab
WatchesApr 09, 2024
Chrono24 Debuts Pre-Owned Watch Authentication Program

The program, now live in Europe, will roll out to the U.S. this summer.

6.21-carat fancy vivid pink diamond
AuctionsApr 09, 2024
Phillips to Offer 6.21-Carat Vivid Pink Diamond

Colored gemstones and signed jewels are the focus of its upcoming Geneva sale.

Jewelers for Children POS System Donations
MajorsApr 09, 2024
Jewel360 Announces New POS Integration, JFC Partnership

The point-of-sale software can now prompt customers to round up their credit card purchases as a donation to Jewelers for Children.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingApr 09, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

Charles & Colvard moissanite bypass engagement ring
SourcingApr 08, 2024
Charles & Colvard Debuts B2B Portal for Moissanite

Select independent jewelers and retailers can now purchase moissanite through Charles & Colvard Direct.

Amber Rank
Events & AwardsApr 08, 2024
AGS Announces First Recipient of ‘Women in Leadership’ Scholarship

Amber Rank of Exclusively Diamonds will receive mentorship, registration to AGS’s 2024 Conclave, and $500.

Jaeger-LeCoultre citrine pinky-ring watch
AuctionsApr 08, 2024
Sotheby’s ‘Rough Diamonds’ Sale Is All About … Watches

The auction will take place Thursday and is underground, literally.

JOGS logo
Events & AwardsApr 08, 2024
JOGS Show Returns to Las Vegas for a Second Year

The trade show is moving downtown to the Expo at World Market Center.

Kira Diam solar plant
Lab-GrownApr 08, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

Brilliant Earth and Jane Goodall collaboration logo
MajorsApr 05, 2024
Brilliant Earth Partners with Jane Goodall

The company is teaming up with the Jane Goodall Institute to promote ethical practices and environmental conservation.

Monica Rich Kosann Slim Heart Locket in gold and Jacquelyn Jablonski
CollectionsApr 05, 2024
Piece of the Week: A Locket for Autism Acceptance Month

Monica Rich Kosann created the “Slim Heart” locket in partnership with model and philanthropist Jacquelyn Jablonski.

Professor Frank Fraley teaching
Events & AwardsApr 05, 2024
BIJC’s Jewelry Education Program for High School Students Begins

“The Future Jewelers Academy” kicked off at the Brooklyn STEAM Center this week.

703 carat Tanzanite
SourcingApr 04, 2024
703-Carat Tanzanite Sets Guinness World Record

Carved by Naomi Sarna, the “L’Heure Bleu” is now the world’s largest cut tanzanite.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy