RAPAPORT… U.S. polished diamond imports increased by 26 percent year over year to $1.58 billion during the month of May 2010. Polished exports rose 49 percent to $985 million, leaving the U.S. with net polished imports of $598 million or roughly the same amount it posted one year ago.
Rough diamond imports surged 154 percent year on year to $61 million, while the country’s rough exports jumped 214 percent to $44 million. The net rough import total of $17 million represented a 70 percent improvement against May 2009. For the month of May 2010, the U.S. net diamond account, which measures net imports, rose almost 3 percent to $615 million.
From January through May, polished imports rose 60 percent year on year to $7 billion, while polished exports increased 56 percent to $5.1 billion. Net polished imports totaled $1.96 billion, compared with $1.15 billion one year ago.
Rough imports to the U.S. were up 164 percent year over year to $222 million and rough exports gained by 109 percent to $121 million, yielding net rough imports of $101 million, compared with $58 million one year ago. The net diamond account for the first five months of 2010 therefore stood at $2.1 billion versus $1.18 billion in 2009.
Israel’s Polished Diamond Exports Jump
Israel’s polished exports rose 149 percent year over year to $457.85 million in June 2010, according to data published by the Ministry of Industry, Trade and Labor. By volume, polished exports rose 119 percent year on year to 280,555.83 carats as the average price of these exports increased by 18 percent to $1,631.94 per carat.
Polished imports grew 56 percent year on year to $389.2 million as net polished exports, measuring the excess of exports over imports, moved to positive $68.7 million from the deficit of $22 million posted one year ago.
Rough imports were up by 42 percent year on year to $355.9 million, while rough exports rose 48 percent to $314.5 million. Israel’s net rough imports, the excess of imports over exports, grew 7 percent to $41.4 million. The country’s net diamond account rose to $27.3 million in June, compared with a deficit of $60 million for June 2009.
Japan’s Polished Imports Edge Up
Japan’s polished diamond imports rose 3.3 percent year on year to $47.4 million in May 2010, according to data published by Momozawa & Co., based on information obtained from the country’s Customs Bureau at the Ministry of Finance. By volume, polished imports fell 8.6 percent to 168,526 carats as the average price of these diamonds rose 13 percent against the previous year to $281 per carat.
Polished imports from India increased by 5.8 percent year on year to $18.4 million, while imports from Japan’s other two main supply sources, Belgium and Israel, fell 7.8 percent and 16.7 percent, respectively.
During the first five months of the year, Japan’s polished imports gained by 3.1 percent year over year to $274.5 million, while by volume, they dropped 8.7 percent to 920,307 carats. The average price of these imports grew 13 percent year on year to $298 per carat.
Japan’s gold jewelry imports for the January through May period rose 5.2 percent year on year to $234.8 million, while the country’s platinum jewelry imports increased by 10.5 percent to $159 million. Pearl imports grew 15 percent year over year to $114.2 million.
India’s Polished Diamond Exports Spike
India’s polished exports jumped 79 percent year on year to $2.2 billion in June, according to data published by the Gem & Jewellery Export Promotion Council (GJEPC). By volume, the exports fell 2 percent to 4.448 million carats as their average price increased 83 percent year over year to $495.01 per carat.
Polished imports grew 84 percent during the month to $1.46 billion as net polished exports, the excess of exports over imports, rose 69 percent to $745.6 million. Rough imports to India rose 45 percent to $1.15 billion, while rough exports increased 59 percent to $90 million. Net rough imports, the extent to which imports exceeded exports, rose 44 percent to $1.06 billion. India’s June net diamond account, representing the total exports of rough and polished less total imports, fell 7 percent to a deficit of $316.3 million.
Botswana’s Export Revenue Grows
Botswana’s diamond export revenue rose 4 percent year over year to $255.1 million in May 2010, the Bank of Botswana (BoB) reported. The bank reported exports of $246.1 million in May 2009.Through the first five months of the present year, though, the country’s diamond exports increased 121 percent year on year to $1.25 billion.
De Beers First-Half Revenue Climbs
De Beers Group’s sales for the first half of 2010 rose 74 percent year on year to $2.98 billion. The company reported net earnings of $255 million, up from the $3 million it posted for the first half of 2009. De Beers registered operating earnings of $304 million, compared with underlying losses of $164 million one year ago.
First-half sales for the Diamond Trading Company (DTC) were up 84 percent year over year to $2.6 billion. Price increases and strong demand from China and India played significant roles in driving sales. DTC stated that rough prices now, “on average,” are comparable with those of June 2008. At the end of the first half, De Beers net debt stood at $1.98 billion, down from the $3.2 billion it recorded six months ago, while its third-party debt totaled $1.87 billion, a 40 percent decline against the $3.09 billion it posted in December 2009. The company’s production rose 134 percent year on year to 15.4 million carats during the first half. The Venetia mine produced 2 million carats, Jwaneng produced 5.3 million carats and Orapa recovered 4.3 million carats. De Beers Canada produced 782,000 carats, while Namdeb recovered 794,000 carats. Debswana’s Cut-8, the major expansion project at the Jwaneng mine, commenced during this period.
Rio Tinto’s Production Expands
Rio Tinto reported that its diamond production rose 182 percent year on year to 3.61 million carats during the second quarter that ended on June 30. Output at Rio Tinto’s fully owned Argyle mine in Australia increased by 538 percent year over year to 2.608 million carats during the period, after returning to normal levels following a maintenance shutdown of the processing facilities in the second quarter of 2009.
Production at the Diavik mine in Canada, in which Rio Tinto has a 60 percent stake, rose 13 percent year on year to 1.612 million carats, while the Murowa mine in Zimbabwe, which the company holds a 77.8 percent stake in, saw output increase by 88 percent to 49,000 carats.
Gem Diamonds’ Rough Sales Flat
Gem Diamonds’ rough diamond sales remained essentially flat at $105.3 million for the first half of 2010. The average price of diamonds sold from the high-value Letseng mine in Lesotho rose 32 percent year on year to $1,728 per carat. Total sales from Letseng fell 3 percent to $71.8 million, while production at the mine dropped 5 percent year on year to 44,748 carats.
Production costs at the Ellendale mine in Australia fell 7 percent year over year after it placed the E4 pipe on care and maintenance in February 2009. Based on the E9 pipe alone, production rose 28 percent. Total Ellendale sales increased 9 percent to $33.5 million year on year as the average price of the mine’s stones rose 171 percent to $434 per carat. The company concluded the half year with $89.6 million in cash and no debt.
Sri Lanka’s Gem Exports Up in First Half
Sri Lanka’s gem and jewelry exports rose 20 percent to $198 million (LKR 22.4 billion) during the first half of 2010, according to the Sri Lanka Daily News. Gemstone exports were up 20 percent to $34 million. The newspaper also reported that diamond re-exports rose 22 percent, earning the country $126 million. Jewelry exports rose 12 percent to $6.4 million. The U.S. market accounted for 26 percent of global gemstone exports during the first half, whereas Thailand held this top spot in 2009.
