Alrosa Diamond Price Index Falls 6% in 2019

(IDEX Online) - Alrosa has announced that the diamond price index for 2019 dropped 6 percent over 2018. For the fourth quarter, it fell 2 percent compared to Q3 2019.

In the fourth quarter, the average realised price for gem-quality diamonds increased 9 percent (down 3% y-o-y) to $148 per carat. For the full year, prices totaled $133/ct (down 19%).

Fourth quarter rough and polished sales revenue increased 50 percent (8% y-o-y) to $916 million, with the total for 2019 reaching $3,338 million (down 26%). Q4 diamond sales increased to $888 million (up 48% q-o-q and up 8% y-o-y), with full-year sales hitting $3,273 million (down 26%).

Alrosa said production for Q4 2019 reached 8.8 million carats with sales of 8.2 million carats. Sales of rough and polished diamonds reached $916 million.

The company reported that Q4 diamond production declined 27 percent to 8.8 million carats compared to Q3 2019. Year-over-year, production fell 15 percent because of lower production at the Jubilee pipe and the International underground mine. 

For the full year, output increased 5 percent to 38.5 million carats, with higher production at the Botuobinskaya pipe and ramp-up at the V.Munskoye deposit.

In the fourth quarter, diamond sales increased 28 percent compared to Q3 (down 9% y-o-y) to 8.2 million carats. This included 5.9 million carats of gem-quality diamonds (up 38% q-o-q and 13% y-o-y).

For 2019, sales decreased 12 percent to 33.4 million carats.

Alrosa's diamond inventories at the end of Q4 2019 increased 33 percent year-over-year to 22.6 million carats, with diamond production exceeding sales volumes throughout the year.