Russian diamond miner Alrosa sold 9.2-million carats in the three months ended September, a 20% quarter-on-quarter decrease, owing to the lack of rough diamond inventories available for sale and the high base effect of the second quarter.
The company, which produced 8.8-million carats in the third quarter, stated on Friday that rough diamond stocks at miners were at minimal levels, as supply dropped structurally, with a limited risk of any meaningful supply response globally.
At the same time, demand for rough diamonds remained strong, pushing up rough diamond prices. Alrosa reported that the rough diamond price index had returned to 2018 levels, with polished diamond prices surpassing the 2018 average.
Further, end demand in the key US market remained stable, supported by demand recovery in other regions, including Europe. Demand growth, however, slowed down in China, in response to economic growth developments in that country.
Alrosa stated that the market was optimistic about the upcoming Christmas season, which in the US would see an earlier-than-usual start this year, noting that jewellers had started placing orders for polished diamonds as early as July.