RAPAPORT… Jewelry CPI Rises
The consumer price index (CPI) for jewelry in the U.S. increased 3.8 percent year over year to 160.9 points in May 2010, according to data provided by the Bureau of Labor Statistics (BLS). The May reading was just a fraction higher than the index reading posted in April. The CPI for all product categories rose 2 percent year on year in May to 217.2 points.
May marked the 28th consecutive cycle for which the jewelry CPI registered over 150 points. The index is based on the reference point of average prices in 1986, which is set at 100 points.
U.S. Polished Diamond Imports Jump
Polished imports to the U.S. increased 71 percent year on year to $1.4 billion in April 2010, according to data published by the Commerce Department. By volume, these imports grew 44 percent to 1.041 million carats as their average price rose by 19 percent compared with a year earlier to $1,294.68 per carat. Polished exports climbed 65 percent to $973 million during the month as net polished imports, representing the excess of imports over exports, surged 91 percent to $376 million.
Rough imports to the U.S. increased 90 percent to $40 million and rough imports gained by 117 percent from the previous year to $26 million. Net rough imports, signaling the extent to which imports exceeded exports, grew 56 percent to $14 million. The U.S. April net diamond account, representing imports of polished and rough less total exports, rose 89 percent to $390 million.
During the first four months of the year, the country’s polished imports climbed 73 percent to $5.4 billion, with imports increasing 53 percent by volume to 4.214 million carats. The average price of polished imports grew 13 percent to $1,288.08 per carat. Polished exports rose 57 percent year on year to $4.1 billion as net polished imports grew 143 percent to $1.4 billion.
Rough imports shot up 168 percent to $161 million from January through April, while rough exports increased 77 percent to $78 million. Net rough imports jumped fivefold to $83 million. The U.S. net diamond account tripled to $1.4 billion for the year to date.
India’s Polished Exports Grow
India’s polished diamond exports jumped 73 percent year on year to almost $1.8 billion in May 2010, while polished imports rose 68 percent to $984 million for the month, based on provisional data released by the country’s Gem & Jewellery Export Promotion Council (GJEPC). India’s net polished exports expanded to $811 million from the $446 million it posted one year ago.
Rough imports were up 55 percent year over year in May to $978 million as rough exports grew 56 percent to $78 million, giving India net rough imports of $900 million, up from the $541 million it posted in May 2009. India’s net diamond account for the month registered a polished deficit of $89 million compared with a polished deficit of $95 million one year ago.
For the year to date, India’s polished diamond exports gained by 95 percent to $8.6 billion and its polished imports more than doubled to $5.2 billion, yielding net polished exports of $3.4 billion, up from $2 billion in 2009. Rough imports rose 162 percent year over year to $4.7 billion and rough exports were up 42 percent to $374 million during the five-month period, producing net rough imports of $4.3 billion, up from $1.5 billion for the comparable period of 2009. India registered a polished export deficit of $864 million for the first five months of 2010, up from the deficit of $430 million it posted one year ago.
Israel’s Polished Exports Surge
Israel’s polished diamond exports grew 64 percent year on year to $601 million in May 2010, according to the country’s Central Bureau of Statistics (CBS). Rough exports rose 47 percent compared with 2009 to $250.9 million.
Combined imports of polished and rough diamonds increased 95 percent to $647.1 million in May as Israel’s net diamond account, representing total exports less total imports, remained flat at $204.8 million. CBS does not provide separate data for rough and polished imports.
For the year to date, Israel’s polished exports rose 82 percent year over year to $2.6 billion, while rough exports increased by 118 percent to $1.3 billion. Total imports grew 124 percent year on year to nearly $3 billion as Israel’s net diamond account climbed 31 percent to $899.5 million.
China’s Polished Imports Soar
China’s polished diamond imports rose 127 percent year over year to $260 million in the first quarter of 2010, according to data published by the Diamond Administration of China (DAC). The overall diamond trade conducted through the Shanghai Diamond Exchange (SDE) doubled to $523 million during the first quarter, with an additional $35 million being traded between members.
Japan’s Polished Imports Increase
Japan’s polished diamond imports improved by 15 percent year over year to $53.1 million in April 2010, according to figures released by Momozawa & Co., based on information from the country’s Customs Bureau of its Ministry of Finance. By volume, polished imports fell 26 percent year on year to 178,875 carats as their average price climbed 56 percent to $297 per carat.
During the first four months of the year, polished imports to Japan increased by 3 percent to $227.1 million as volumes declined 9 percent to 751,781 carats.
Hong Kong’s Polished Imports Up
Hong Kong’s polished diamond imports increased 36 percent year on year to $2.9 billion in the first quarter of 2010, the Diamond Federation of Hong Kong (DFHK) reported. By volume, polished imports grew 10 percent to 5.978 million carats. Polished exports climbed 24 percent to $2.1 billion as Hong Kong’s net polished imports, the excess of imports over imports, rose 85 percent to $775.3 million.
First-quarter rough imports jumped 57 percent over the previous year to $253.4 million. Rough exports rose 27 percent during the quarter as net rough imports improved to $41.7 million. Hong Kong’s net diamond account, the amount of total polished and rough imports less total exports, shot up 97 percent to $817 million.
Botswana’s Diamond Exports Climb
Botswana’s polished and rough diamond exports rose 36 percent year over year to $233.6 million in April 2010, the Bank of Botswana (BoB) reported. The data showed that first-quarter diamond exports grew 101 percent year on year to $476.9 million, but remained well below the average export levels recorded in the same periods of previous years.
In its 2009 annual report, published separately, diamond exports dropped 31 percent compared with 2008 to $2.2 billion. Diamond exports declined 26.7 percent and comprised 64 percent of the country’s total export revenue, the same portion it accounted for in 2008. The annual report further showed that diamond imports — both rough and polished — fell 17 percent year over year to $451 million (BWP 3.14 billion) in 2009.
Harry Winston’s Rough Sales Slip
Harry Winston Diamond Corporation’s mining unit registered a 15 percent decline in its rough diamond sales to $48.9 million in its first quarter that ended on April 30, 2010. Sales were impacted by the lower level of production from the Diavik mine in Canada, in which Harry Winston owns a 40 percent share. The company’s share of production at Diavik fell 12 percent year over year to 625,000 carats.
