Economic Bulletin

Rough imports were down 49 percent to $48 million, while rough exports soared 105 percent to $43 million, resulting in U.S. net rough imports of $5 million. Net imports of polished and rough diamonds for the month of June were $21 million, compared with a deficit of $214 million one year ago.

During the first half of the year, polished imports sank 48 percent to $5.4 billion and polished exports declined 46 percent to $4.2 billion, giving the U.S. a net polished import figure of $1.2 billion, a drop of 54 percent. Rough imports plummeted 71 percent to $132 million, while rough exports fell 52 percent to $101 million, leaving the U.S. with a net rough import figure of $31 million, a decline of 87 percent from the first half of 2008. The U.S. net diamond account for January through June decreased by 57 percent to $1.2 billion.

India’s Polished Exports Drop
India’s polished diamond exports fell 7 percent to $1.2 billion in July as the average price on exports dropped 17 percent to $286.58 per carat, according to data posted by the Gem & Jewellery Export Promotion Council (GJEPC). Exports rose 12 percent by volume to 4.3 million carats. The country’s polished diamond imports declined 5 percent to $762.9 million and net polished exports, the excess of exports over imports, fell 9 percent to $475.7 million.

GJEPC reported that rough imports decreased 25 percent in July to $848.3 million and rough exports dropped 37 percent to $40.7 million. Net rough imports, the excess of imports over exports, fell 25 percent to $807.6 million.

India’s economy is expected to grow by 6.7 percent this year, Pranab Mukherjee, India’s finance minister, told the nation’s Parliament, Voice of America (VOA) reported. His optimism may be based on the news that the nation’s biggest cellular telephone company, Bharti Airtel, posted 24 percent growth, while the country’s leading automobile maker, Tata Motors, reported a profit increase of nearly 60 percent, showing that companies that depend on domestic demand appear to have weathered the global economic crisis. However, economists warn that it may take at least three years for the country to return to the high growth rate of 9 percent seen in the years prior to 2008, according to VOA. — Additional reporting by Acquire Media.

Israel’s Polished Exports Sink
Israel’s polished diamond exports declined 52 percent to $398.9 million in July, based on figures published by the nation’s Central Bureau of Statistics (CBS). Rough exports dropped 43 percent to $179 during the month. Total exports, polished and rough combined, fell 45 percent to $577.9 million.

The country’s total diamond imports decreased 53 percent to $414.9 million. CBS does not provide separate import data for rough and polished stones. Israel’s July net diamond account, representing the extent to which total diamond exports exceeded imports, dropped 37 percent to $163 million.

During the first seven months of the year, Israel’s polished exports fell 57 percent to $2 billion, while rough exports dropped 60 percent to $994.1 million. Total exports declined 58 percent to $3 billion and total imports decreased 63 percent to $2.2 billion. As a result, Israel’s net diamond account for January through July sagged 30 percent to $777.4 million.

Japan’s Polished Imports Down
Japan’s polished diamond imports decreased 26 percent to $50.9 million in June, according to data published by The J Club, based on statistics from the Customs Bureau of the Finance Ministry. Polished imports fell 3 percent by volume to 156,710 carats as their average price declined 23 percent to $325 per carat. Polished imports from India slipped 9.6 percent to $21 million, imports from Belgium tumbled 37 percent to $12.8 million and those from Israel plunged 53 percent to $5.1 million.

For the first half of the year, Japan’s polished imports declined 24 percent to $317.2 million, with volume down 1.4 percent to 1,164,422 carats. Average prices decreased 23 percent to $272 per carat.

Japan’s gold jewelry imports fell 40 percent to $45.5 million in June and decreased 39 percent to $268.7 million during the first six months of 2009. Platinum jewelry imports were down 28 percent to $25.8 million for the month and dropped 28 percent to $169.7 million during the half year. The country’s silver jewelry imports declined 20 percent to $13.4 million in June, while articles made from other precious metals sank 49 percent to $225,000 during the month.

Shanghai Diamond Exchange Trading Volume Rises
Trading volume on the Shanghai Diamond Exchange (SDE) — total import, export and intermember transactions — during the first half of 2009 reached $692 million, a year-on-year increase of 7 percent, based on data from the Diamond Administration of China. Polished diamond imports reached $300 million, up 13 percent from one year ago, making China the third-largest diamond-consuming country in the world.

From January to May 2009, polished diamond imports reached $238 million. This was very close to the $266 million reported by Japan, the world’s second-largest importer of polished, but still far below number one — the U.S. imported $1.2 billion. SDE trading volume reached $1.3 billion in 2008. Ten more members joined the SDE in the first half of 2009, bringing its total membership to 240.

Rio Tinto’s Diamond Revenues Plunge
Rio Tinto reported that revenues from its diamond operations fell 68 percent to $184 million in the six months that ended June 30, 2009. As a result, the diamond unit posted a net loss of $56 million, compared with profits of $108 million one year ago. Rio Tinto’s full group net earnings fell 65 percent to $2.5 billion, with revenues down 35 percent to $19.5 billion.

Production across the company’s three diamond operations fell 14 percent to 6.8 million carats during the half year. Rio Tinto has full ownership of the Argyle mine in Australia, a 60 percent stake in the Diavik mine in Canada and 77.8 percent of the Murowa mine in Zimbabwe. The firm did not provide separate data for each mine.

BHP Billiton’s Diamond Revenues Weaken
Revenues from BHP Billiton’s diamonds and specialty products segment fell 7.5 percent to $896 million for the fiscal year that ended June 30, 2009, according to a company statement. Profits from operations dropped 60 percent to $75 million.

BHP Billiton reported that total group revenues were down 16 percent to $50.2 billion, while profits from operations dropped by half to $12.2 billion. BHP Billiton, the world’s largest mining company, is the fourth-largest diamond producer, behind De Beers, ALROSA and Rio Tinto.

Dubai’s Gold Trade Grows
Dubai’s gold trade grew by 21 percent in the second quarter of 2009 to $7.2 billion, the Dubai Multi Commodities Centre (DMCC) reported. Dubai imported 160 metric tons (176 tons) of gold, 12 percent more than in the previous year. Dubai exported 97 metric tons (107 tons) of gold during the quarter, up 52 percent from one year ago. India, Switzerland and Iran were Dubai’s top import partners, while India, Malaysia and Switzerland were top exporters, according to the DMCC.