RAPAPORT... Polished diamond imports to the U.S. increased by 68 percent to $1.3 billion during January 2010 compared with one year earlier, while polished exports from the country rose 52 percent to $911 million. Net polished imports were up by 127 percent to $356 million.
Rough diamond imports to the U.S. in January jumped a whopping 236 percent to $47 million, while rough exports improved only 7 percent to $16 million. U.S. net rough imports totaled $31 million, whereas one year ago, they stood at negative $1 million. The net diamond account for the U.S., which measures net imports of both polished and rough diamonds, increased by 148 percent to $387 million during the month.
India’s Polished Diamond Exports Soar
India’s polished diamond exports rose 59 percent year over year to $1.4 billion during February 2010, according to provisional data provided by the Gem & Jewellery Export Promotion Council (GJEPC). Polished imports increased 17 percent to $787.5 million, meaning the country’s net polished diamond exports tripled compared with February 2009 to $582.5 million.
Rough imports shot up 362 percent to $983.6 million in February 2010 as rough exports grew 79 percent to $80.7 million. India’s net rough imports stood at $902.9 million, while India’s net diamond account, which subtracts net rough imports from net polished exports, stood at a deficit of $320.4 million.
Belgium’s Polished Exports Up
Belgium’s polished diamond exports rose 15 percent in February 2010 compared with one year ago to $875.3 million, according to the Antwerp World Diamond Centre (AWDC). However, the country’s polished exports were still 3.8 percent below their February 2008 level. By volume, Belgium’s exports for the month increased by 1 percent year over year to 582.934 carats as the average price of the stones grew 14 percent to $1,501.47 per carat.
Polished exports to all major destinations grew during the month, except for those to Hong Kong, which remained the second-largest export market behind the U.S. Polished exports to the U.S. increased by 62 percent to $254.8 million, while those to Hong Kong declined by 32 percent to $183.4 million. Belgium’s polished exports to Israel grew by 85 percent to $104 million and those to India were up by 24 percent to $45.2 million.
The country’s polished imports increased by 22 percent to $663 million in February as its net polished exports, which measure the excess of exports over imports, indicating the amount of local polished trade, fell 1 percent to $212.3 million.
Rough imports nearly tripled to $781.7 million during the month, while Belgium’s rough exports also increased by nearly threefold to $904 million. The country’s net rough imports, representing imports less exports and indicating the amount of rough available for local dealing and polishing, fell 81 percent to negative $122.3 million. Belgium’s February net diamond account, representing total exports of rough and polished less total imports, grew by 19 percent to $334.6 million.
Israel’s Polished Exports Jump
Israel’s polished diamond exports improved 39 percent year over year to $436.9 million in February 2010, according to the country’s Central Bureau of Statistics (CBS). Rough exports tripled to $244.2 million, bringing the country’s total exports of rough and polished combined 72 percent higher than the previous year to $681.1 million.
CBS reported that total imports of polished and rough diamonds increased 195 percent to $593.2 million. The bureau does not provide separate data for rough and polished imports. Israel’s February net diamond account, a measure of total exports less total imports that indicates the net value of the diamonds exported, dropped 55 percent to $87.9 million.
Japan’s Polished Imports Shrink
Japan’s polished diamond imports fell 25 percent in January 2010 compared with a year earlier to $50.3 million, the J Club, Inc. reported, citing data from the country’s Finance Ministry. By volume, Japan’s total polished imports decreased by 2.8 percent to 189,338 carats as the average price of the diamonds dropped 23 percent to $266 per carat.
Imports from all of Japan’s major diamond sources declined during the month, including a 53 percent drop from Israel to $4.4 million. Polished imports from Belgium decreased 35 percent to $10.9 million, while those from India sank 28 percent to $22.6 million. Increases were registered in imports from China, which were up 59 percent, from Hong Kong, which gained by 6.5 percent, and the U.S., which jumped 17 percent.
Russia’s Rough Production Drops in 2009
Russia’s diamond production fell 6 percent to 34.8 million carats in 2009 compared with 2008, according to data published on the Finance Ministry’s website. By value, production dropped 6.7 percent to $2.3 billion as the average price of the rough declined by 0.9 percent to $67.34 per carat.
Production in the first half of the year totaled 18.4 million carats, a 4 percent increase year over year, while by value, it dropped 0.6 percent to $1.2 billion. In the second half, production declined by 15 percent to 16.4 million carats and by value, it was down 13.3 percent to $1.1 billion. Russia’s production has consistently exceeded $2.5 billion a year since 2005 — with the exception of last year, when, during the first half, government-run ALROSA withheld all sales of rough to the market, supplying only the state repository, Gokhran.
The Finance Ministry also reported that the country exported 14.7 million carats of rough valued at $1.2 billion in 2009. Russia imported 141,904 carats of rough valued at $124.1 million.
Australia’s Rough Production Slips
Australia’s rough diamond production fell 34 percent year over year to 3.6 million carats during its second fiscal quarter that ended on December 31, 2010, according to the Australian Bureau of Agricultural and Resource Economics (ABARE). Compared with the previous quarter, which extended from July through September 2009, the country’s output rose by 53 percent.
Rough diamond exports dropped by 53 percent to $89 million and declined in volume by 45 percent to nearly 3 million carats during the second quarter. Rough imports to Australia increased by 13 percent to $114 million during the quarter.
Hong Kong’s Jewelry Exports Increase
Hong Kong’s precious metal jewelry exports rose 19.1 percent year over year to $307 million in January 2010, according to data published by the Hong Kong Trade Development Council (HKTDC), which cited the Hong Kong Census & Statistics Department (C&SD). Precious metal jewelry imports increased by 40.6 percent to $378 million.
For the full fiscal year, the HKTDC reported that Hong Kong’s precious metal jewelry exports fell 24 percent to $3.5 billion in 2009. The biggest market for fine jewelry exports was the U.S., although exports to the U.S. dropped 23 percent to $3.7 billion. Exports to China, the second-largest fine jewelry export market, were down 27 percent to $1.3 billion. Precious metal jewelry imports fell 14 percent to nearly $4 billion in 2009.
In addition, the HKTDC released the results of a survey showing that the confidence level of Hong Kong’s exporters has improved during the past few months, Xinhua reported. The HKTDC Export Index increased to 55.1 in the first quarter.
The index for jewelry, however, slipped to 36.8, indicating that jewelry exporters do not believe the market will improve in the near term. Timepiece and electronics exporters were the most optimistic, expecting more purchases of raw materials or goods for export. — Additional reporting provided by Acquire Media.
Article from the Rapaport Magazine - April 2010. To subscribe click here.