Alrosa’s diamond prices down 6% so far this year, but recovery coming

Alrosa’s diamond prices down 6% so far this year, but recovery coming

Alrosa unveiled in May a 78.02 ct. diamond from its Mir underground mine (pictured), estimated to be worth more than $600,000 if put on auction.

Russia's Alrosa, the world's top diamond producer by output in carats, said Tuesday prices for the precious rocks its mines have fallen by 6% since the start of 2015, but expects market conditions to improve by the end of the year.

According to Reuters, the company saw its rough diamond prices decrease by 3% in February and a further 3% at the company's May trading session.

Speaking at the 2015 Presidents' Meeting of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA), Alrosa’s President, Andrey Zharkov, said current prices are stable. He added that trading centres continue to be key for the market.

“Alrosa will continue to foster close relations with diamond centres and industry organisations to contribute to the sector development, information exchange and consumer confidence”, Zharkov said in a statement.

The company, as well as other Russian exporters, has however benefited from the depreciation of the rouble, weakened by Western sanctions and lower oil prices, as their costs fell in dollar-terms, supporting margins.

In fact, its net profit rose to 22.2 billion roubles (US$409 million) in the first quarter of 2015, up almost fourfold year-on-year due to a weaker rouble.