Alrosa sees small increase in demand for rough goods

Russian diamond mining giant Alrosa has reported a slight rise in demand for rough diamonds due to lower production, a moderate rise in demand for diamond jewelry in the United States and Japan, and steady growth in polished diamond consumption in India and China.

Alrosa has revised downwards its estimate for rough diamond price rises this year to 1 percent from an estimate at the start of this year of a 4-percent increase.

The also miner believes there will be moderate price increases in almost all assortments due to a lack of speculative activity which will help stabilize the market in 2013.

Alrosa forecasts rough and polished diamond sales of US$4.59 billion this year – three percent more than in 2011.

Meanwhile, it expects to record rough diamond production this year of 34.4 million carats, compared with 34.6 million carats last year.

The slight decline in rough diamond output is due to technological issues relating to of implementation of its program regarding underground mine construction work, the firm said.

It said net profits were estimated at US$1.1 billion (34.3 billion rubles), 0.4 percent above the initial prediction for 2012, and more than 16 percent above its net profits for 2011.

Alrosa also reported that is planning to enter into additional long-term rough diamond supply agreements in order to diversify its geographical sales policy.

Alrosa said its Supervisory Board also considered approval of its updated consolidated budget for 2012 at a meeting held in Moscow.