U.S. Polished Exports Soar

U.S. polished diamond exports surged to a record $2.38 billion in June 2011, representing a 31.5 percent year-on-year increase that surpassed the previous export record of $1.88 billion set in June 2008. The U.S., traditionally a net importer of polished diamonds, reported record polished imports of $2.52 billion in May.

Polished diamond imports rose 5.6 percent year on year to $1.9 billion, largely due to a higher price-per-carat average, which rose 9.2 percent to $1,715. The volume of carats fell 3.3 percent to 1.1 million.

Rough diamond imports in June rose 9 percent year on year to $48 million and rough exports surged 42.9 percent to $40 million, leaving net rough imports of $8 million or half the amount from June 2010.

For the first half of 2011, the U.S. imported $11.3 billion in polished goods and exported $9.4 billion, leaving net imports of $1.9 billion or a drop of 10 percent.

Belgium’s Polished Exports Climb

Belgium’s polished diamond exports rose 37 percent year on year to $1.56 billion in July 2011, the Antwerp World Diamond Centre (AWDC) reported. By volume, exports increased 12 percent to 911,115.44 carats as their average price grew 24 percent to $1,711.11 per carat. Growth was driven by a significant rise in exports to all of Belgium’s major markets except Hong Kong, which grew just 3 percent to $195.5 million.

During the first seven months of 2011, Belgium’s polished exports grew 35 percent to $8.09 billion, while polished imports increased 38 percent to $8.07 billion. Rough imports rose 52 percent to $8.48 billion and rough exports grew 44 percent to $9.6 billion as net rough imports fell 2 percent to a deficit of $1.12 billion. Belgium’s net diamond account for January through July rose 13 percent to $1.96 billion.

Israel’s Polished Exports Surge

Israel’s polished exports rose 57 percent year on year to $713.8 million in July 2011, according to data published by the Central Bureau of Statistics (CBS). Rough exports grew 45 percent to $351.3 million.

CBS reported that total diamond imports, including rough and polished, jumped 83 percent to $1.15 billion. The bureau does not provide separate rough and polished import data. Israel’s net diamond account, representing total exports of rough and polished less total imports, fell to a deficit of $80.6 million, compared to a net account of $71.7 million a year earlier.

For the first seven months of the year, Israel’s polished exports rose 37 percent to $4.77 billion, while rough exports grew 40 percent to $2.62 billion. Total imports increased 49 percent to $6.45 billion.

Israel’s net diamond account for the seven months grew 7 percent to $940.5 million.

India’s Polished Exports Up

India’s polished diamond exports rose 14 percent year on year to $1.93 billion in July 2011, according to provisional figures reported by the Gem & Jewellery Export Promotion Council (GJEPC). By volume, polished exports rose 3 percent to 4.93 million carats as the average price of the goods grew 11 percent to $390.16 per carat.

Polished imports surged 29 percent to $1.43 billion during July. Rough imports doubled to $1.89 billion, while by volume those imports surged by 19 percent to 15.888 million carats. The average price on India’s rough imports grew 67 percent to $118.73 per carat. Rough exports jumped 96 percent to $124 million, leaving net rough imports of $1.76 billion or double that of July 2010.

For the calendar 2011 year-to-date, India’s polished diamond exports rose 41 percent to $17.59 billion and polished imports rose 85 percent to $14.2 billion. Rough imports surged 42 percent to $9.49 billion, while rough exports jumped 70 percent to $895 million. India’s net diamond account for the first seven months of 2011 registered a substantial polished export deficit of $5.2 billion compared with a deficit of $1.5 billion one year ago.

Hong Kong’s Polished Imports Rise

Hong Kong’s polished diamond imports rose 37 percent year on year to $4.5 billion in the second quarter of 2011, data published by the Diamond Federation of Hong Kong, China showed. By volume, the imports increased 1 percent to 7.113 million carats as their average price grew 36 percent to $636.62 per carat.

Polished exports rose 44 percent to $3.3 billion and net polished imports, representing polished imports less exports, increased 21 percent to $1.2 billion. Rough imports more than doubled to $686.4 million, while rough exports grew 57 percent to $497.3 million.

Botswana’s Diamond Exports Soar

Botswana’s diamond exports rose 97 percent year on year to $1.4 billion in the second quarter of 2011, the Bank of Botswana (BoB) reported. Exports during the first half of the year increased 72 percent to $2.53 billion. The bank’s data is a representative sample of the country’s full diamond trade and is sourced from the Diamond Trading Company Botswana (DTCB), Leo Schachter Botswana, Teemane Manufacturing Co. and the Central Statistics Office (CSO).

Gem Diamonds’ Profits Jump

Gem Diamonds reported its first fiscal-half revenue rose 89 percent to $196.5 million for the six months that ended on June 30, 2011. Profits were $50.9 million compared with $6.1 million one year ago. At the close of the period, group diamond inventory was basically flat at $16.7 million.

Rough diamonds produced and sold from the Letseng property in Lesotho rose 27 percent year on year to 52,614 carats. Overall, Letseng achieved an average per-carat price of $3,052, up from $1,728 one year ago. But the company sold 105 diamonds from Letseng, which achieved prices in excess of $20,000 per carat. One of those diamonds, a 2.79-carat blue stone, sold for $199,999 per carat.

Gem Diamonds sold 57,874 carats of rough diamonds from its Ellendale inventory during the first half, which represented a 25 percent year-on-year decrease. However, the average price-per-carat rose 32 percent to $573. Of the higher-value stones sold, the mining company delivered 5,687 carats of fancy yellow diamonds to Tiffany & Co. at an average price per carat of $4,045, an increase of 56 percent.

BHP Billiton’s Diamond Revenues Up

BHP Billiton reported that revenue from its diamond operations rose 12 percent to $1 billion in the fiscal year that ended on June 30, 2011, as higher prices compensated for a decline in production. Earnings before interest and tax (EBIT) at the diamond unit rose 12 percent to $587 million.

Rough production at the Ekati mine, BHP Billiton’s only diamond asset in which it owns an 80 percent stake, fell 18 percent to 2.5 million carats during the year. The company said it expects lower average grades to impact Ekati production in the medium term, consistent with its mine plan.

BHP Billiton’s group revenues grew 36 percent to $71.74 billion, while profit jumped 86 percent to $23.6 billion as higher commodities prices were driven by demand from China.

Article from the Rapaport Magazine - September 2011. To subscribe click here.