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Alrosa: May sales results – Restocking continued despite epidemiological situation

  • ALROSA (ALRS.RX, O/W, RUB 139.6/share) reported its’ May sales results
  • Overall sales reached $365mn, down 9% m/m and materially above last year
  • Management comment, provided by the company, highlights strong demand from Indian midstream

ALROSA (ALRS.RX, O/W, RUB 139.6/share) reported its’ May sales results. The figures came above our expectations yet down vs previous month reflecting seasonal developments as well as major restocking that took place in the end of 2020 and beginning of 2021. Overall sales reached $365 mn, down 9% m/m and materially above last year when rough diamonds sales were nearly in a zero territory due to pandemic. Compared with 2019 and 2018 sales figures for May demonstrate 37% and 27% corresponding increase which perfectly illustrates the state of demand in the industry.

Management comment, provided by the company, highlights strong demand from Indian midstream, which is fully adopted to processing all available volumes coming from producers while recovering from pandemic. Earlier this week the market absorbed the price increase for larger diamonds of De Beers. As end-demand for diamond jewelry remains robust in all key regions, we believe that midstream demand for rough demands remains strong while actual supply constraints of major rough diamond producers being the bottleneck in increased sales volumes. We reiterate our O/W recommendation for ALROSA stock.


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The contents of this document have been prepared by Joint Stock Company “Alfa-Bank” ("Alfa Bank") as Investment Research within the meaning of Article 36 of Commission Delegated Regulation (EU) 2017/5...

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