Sourcing

Alrosa’s Diamond Sales Falter in February

SourcingMar 11, 2020

Alrosa’s Diamond Sales Falter in February

After a strong start to the year, uncertainty surrounding the continuing spread of COVID-19 weighed on the miner’s sales.

2019_Alrosa_Udachny.jpg
Alrosa’s Udachny open-pit mine in the Yakutia region of Siberia. The miner plans to mine 34 million carats of diamonds in 2020, down from 39 million carats last year. (Photo courtesy of Alrosa)

Moscow—Alrosa’s diamond sales declined in February amid the continuing spread of COVID-19, and the miner is cutting its supply forecast for 2020.

The Moscow-based diamond miner reported Wednesday that sales of rough and polished diamonds totaled $346.4 million, essentially unchanged from $345.6 million a year ago but down 14 percent from January, a month in which it saw a double-digit increase in sales as cutters restocked. 

“In February, the uncertainty with the spread of COVID-19 started to weigh negatively on the demand and customers’ activity, the factor that will be impacting demand in the coming months,” said Evgeny Agureev, Alrosa’s deputy CEO. “However, we continue to pursue ‘price-over-volume’ strategy to keep prices stable rather than increasing sales volumes.”

In an analyst briefing held Tuesday in conjunction with the release of its full-year 2019 results, Alrosa said COVID-19 poses a setback to an industry that’s just emerging from a difficult year.

“The diamond industry came out of 2018/2019 crisis year healthier, with balanced stocks, disciplined supply management across the chain, and a more financially sustainable mid-stream segment,” the company remarked.

“However, in the short-term certain headwinds … such as the COVID-19 outbreak could decelerate demand recovery, which started to materialize in the second half of 2019.”

Alrosa finished 2019 with a 21 percent drop in revenue to 238 billion rubles ($3.3 billion) and net profit falling 31 percent to 63 billion rubles ($885.6 million).

The diamond miner saw rough diamond sales sink 26 percent on the year as it allowed clients to buy less in the face of faltering demand, excess supply in the pipeline and manufacturers’ continuing difficulties in securing financing.

Miners like De Beers and Alrosa are also grappling with the increasing amount of diamond jewelry sold online, as e-commerce sites do not have to hold the same level of inventory as brick-and-mortar stores with showcases to fill.

The diamond market picked up in August as consumer activity recovered in key sales markets in the second half of the year, particularly in the United States, Chief Financial Officer Alexey Philippovskiy said.

Alrosa finished the year with fourth quarter revenues up 5 percent year-over-year.

The company said in its analyst briefing that its mid- to long-term outlook for the diamond industry remains optimistic, due to a growing middle class in countries like China, India, Vietnam and Indonesia, and shrinking supply.

In November, Alrosa announced it was cutting its production

forecast for 2020 due to higher-than-average inventory at the end of 2019.

It expects to mine 34 million carats, down from 39 million carats last year and the 38 million carats it originally forecast.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Mikimoto Les Pétales Campaign Imagery and Les Pétales Necklace
CollectionsJul 08, 2025
Mikimoto’s High Jewelry Collection Turns Pearls into Petals

The “Les Pétales” collection imagines roses caught mid-bloom as a tribute to nature’s beauty.

National Jeweler columnist and jewelry sales expert Peter Smith
ColumnistsJul 08, 2025
Peter Smith: Why Jewelers Struggle With Premium Pricing

Luxury brands charge thousands for their shoes and handbags. Jewelers pricing diamond products should take note, Peter Smith writes.

David Rotenberg of David Craig Jewelers
IndependentsJul 08, 2025
David Rotenberg of David Craig Jewelers Dies at 79

Rotenberg was an active member of the American Gem Society and an accomplished appraiser who also worked with therapy dogs at a hospital.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Diamond Divas Cast
TechnologyJul 08, 2025
‘Diamond Divas’ Brings the Showroom to Social Media Reality Series

It follows New York-based brand Shahla Karimi Jewelry’s all-women team in “Say Yes to the Dress” meets “The Office”-style episodes.

Weekly QuizJul 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
SMO Golden Gala
Policies & IssuesJul 08, 2025
SMO Gold Launches New Foundation

In its inaugural year, the SMO Foundation will focus on supporting two organizations in West Africa and one in South America.

Stock image of container ship in port
Policies & IssuesJul 07, 2025
Higher Tariffs Set to Take Effect Aug. 1, Officials Say

The announcement comes just as the 90-day freeze on the “reciprocal” tariffs nears its end, giving countries more time to negotiate.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

David Kellie
MajorsJul 07, 2025
Natural Diamond Council CEO David Kellie To Step Down

Kellie, who joined the organization in 2019, will remain in his role through the end of 2025.

Suspects in Glendale burglary
CrimeJul 07, 2025
7 Suspects Charged in California Jewelry Store Burglary

Police officers apprehended the suspects as they were allegedly attempting to gain entry into another jewelry store.

Ella Klein Internship
Events & AwardsJul 07, 2025
Applications Open for Ella Klein Internship

The program, a collaboration between Julius Klein Diamonds and the Women’s Jewelry Association, is in its second year.

GIA iD100® Technology
Supplier BulletinJul 03, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Madison Keys in Brilliant Earth campaign
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New Ambassador

The 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.

Muse Nordstrom shop-in-shop
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry Hall

The West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.

Yeprem Golden Strada Statement Necklace
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From Yeprem

The brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.

Stock image of police cars with their lights on
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in Burglaries

JSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.

Exterior and entryway of Boucheron’s Los Angeles Flagship
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast Flagship

Located on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.

Exterior of Marco Bicego Milan Flagship
MajorsJul 02, 2025
Marco Bicego Opens Milan Flagship

The new location continues the brand’s celebration of its 25th anniversary.

Chrono24 Time Is Our Thing campaign image
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New Campaign

The online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.

Counterfeit Pandora jewelry in bags and boxes
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry Network

Working with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.

Cast Issa Rae
MajorsJul 01, 2025
Cast Closes Business, Plans for Relaunch

The jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.

Eve Goldberg, Matthew Denatale, Willie Lopez, Benjamin Goldberg
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship Program

The company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.

Elie Hannoush
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73

He is remembered for his successful entrepreneurship, generosity, and dedication to his family.

Claire’s store
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report Says

The jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.

Mindi Mond Spike Earrings
TrendsJul 01, 2025
Amanda’s Style File: Red Hot Rubies

Welcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.

The Story of Everything Campaign, Toadstool Mushroom and Cosmic Egg
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’

Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.

Smart Age Solutions CEO Emmanuel Raheb
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry Sales

The best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.

×

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