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CPI for Jewelry Up
The year-to-year consumer price index (CPI) for jewelry in the U.S. rose 6.8 percent to 154.68 points during the month of November, according to statistics provided by the Bureau of Labor Statistics (BLS). The rate, which uses average prices from 1986 as its reference point, was slightly lower than in October. For the watch and jewelry categories combined, the November index was up 6.4 percent from the previous year to 147.87. A drop in energy prices and the slowing economy eased consumer inflation during the month, as prices overall rose just 1.1 percent from one year ago.
Diamond Imports to U.S. SinkPolished diamond imports to the U.S. fell 23 percent to $1.5 billion in October, according to the U.S. Census Bureau, reflecting retailers’ lower expectations for the Christmas season. Polished exports rose 6 percent to $1.1 billion during the month.
The country’s rough imports declined 33 percent to $65 million and its rough exports decreased 25 percent to $27 million in October. The net diamond account for the month -- the extent to which total imports of both rough and polished exceeded total exports -- dropped 53 percent to $469 million.
For the first ten months of the year, polished imports jumped 12 percent to $16.9 billion, while exports increased 37 percent to $12.5 billion. Rough imports for the year to date grew 6 percent to $711 million and exports decreased 3 percent to $362 million, causing net rough imports to expand by 18 percent to $349 million. The U.S.’s net diamond account for the period extending from January through October fell 24 percent to $4.8 billion.
Russia’s Rough Exports SlipRussia exported 22.844 million carats of rough diamonds during the first nine months of 2008, according to the Finance Ministry’s compilation of Kimberley Process (KP) certification data, Interfax reported. RDR records show that the figure represents a drop of 33 percent from the approximately 34 million carats exported in 2007. The country’s total rough exports were valued at $1.5 billion, per Interfax, which RDR records reveal is a decrease of about 39 percent from 2007’s $2.5 billion.
The country exported 16.326 million carats of rough diamonds to the European Union (EU) during the period, an increase of 17 percent from 14 million carats in 2007. EU exports were valued at $1.1 billion, a jump of approximately 4 percent, compared with the previous year’s $1.1 billion.
Russia’s overall rough diamond imports totaled 151,890 carats in the third quarter -- more than double the 73,289 carats imported in the entire first half of 2008. However, during the first nine months of 2008, the country imported only 225,179 carats of rough diamonds, a drop of at least 9.9 percent from the over 250,000 carats imported in the first nine months of 2007. Russia imported the majority of its rough from the EU: 215,151 carats valued at $30.8 million during the first nine months of 2008, according to Interfax. Russia and its Yakutia-based diamond firm ALROSA produce a quarter of the world’s uncut diamonds.
-- Additional reporting by Dialog NewsEdge.
India’s Polished Exports Continue to Fall
India’s polished diamond exports had fallen in October 2008 for the first time in about 18 months and the trend continued in November, with polished exports dropping 46 percent to $510.4 million. The Gem and Jewellery Export Promotion Council (GJEPC), which published the data, did not comment on whether the terror attacks in Mumbai in late November had an impact on the trade. The nation’s polished imports grew 19 percent to $449.6 million.
The volume of imports clearly reflected the Indian diamond industry’s decision to freeze all rough imports, which was enacted in the last week of November. Rough imports sank 15 percent to 8.148 million carats, but were up 13 percent by value to $599.6 million due to a 33 percent increase in the average price of rough imports over November 2007. Rough exports grew 3 percent to $42.8 million, though export volumes fell 34 percent for the month.
Israel Withholds Diamond Trade InformationShmuel Mordechai, Israel’s diamond controller, explained that Israel has decided to withhold its diamond import and export data for November due to the low level of trade during the month. October exports fell 46 percent from the same month of last year and the decline in November was expected to be even steeper. Total polished exports for the first ten months of the year fell 2 percent to $5.8 billion, the Ministry of Industry, Trade and Labor reported. Mordechai said that the statistics for the end of the year will be released on schedule.
Japan’s Polished Imports Drop
Japan’s polished diamond imports fell 17 percent to $74.9 million in October 2008, according to data compiled by the J Club from the country’s Customs Bureau and Ministry of Finance. By volume, imports declined 14 percent to 229,706 carats.
Buying from India, Japan’s largest source for polished diamonds, dropped 32 percent to $33.2 million, while imports from Israel declined 23 percent to $6.8 million. Imports from Belgium increased 19 percent to $21.3 million.
Gold jewelry imports to Japan dropped 6 percent from last year to $80.7 million in October, but were still 8 percent higher for the January through October period at $705.7 million. Platinum jewelry imports grew 34 percent to $47.7 million for the month and jumped 15 percent for the year to $397.6 million. October imports of silver jewelry declined 18 percent to $29.8 million, while other precious metals remained flat at about $381,000.
Belgium’s Rough Trade DeclinesBelgium’s rough imports sank 34.3 percent to $513.5 million in November and its rough exports declined 39 percent to $516.7 million. The country’s polished exports fell 9.8 percent to $948.2 million during the month, while its polished imports were nearly flat with an increase of 0.8 percent to $880.4 million.
For January through November, Belgium’s rough imports rose 9.2 percent to $10.2 billion and rough exports increased 1.4 percent to $10.4 billion. Polished diamond exports jumped 18.2 percent to $11.6 billion for the year to date, while polished imports grew 23.5 percent to $11.5 billion.
Thailand’s Precious Stone Exports SoarThe Thai Gem and Jewelry Traders Association (TGJTA) reported a 70 percent increase in precious stone and jewelry exports between January and September 2008 to $6 billion, advancing the country’s goal of becoming a major gem and jewelry hub in Asia. The top export destination for Thai jewels was Hong Kong, followed by Australia, the U.S., Switzerland and Israel.
Polished diamond exports grew 26 percent to $882.7 million for the period. Thailand’s exports to Israel grew 14 percent to $224.2 million. This was followed by exports to Belgium, which were up 12 percent to $215.2 million, and Hong Kong, which experienced a 30 percent increase to $175.1 million.
Article from the Rapaport Magazine - January 2009. To subscribe click here.