Antwerp's imports and exports of rough and polished diamonds were lower in June when compared to the same month a year earlier, but the rate of the slowdown was below the average falloff reported during the first half of the year, according to an AWDC report made available to Rough&Polished. While this trend was somewhat moderate in respect to polished diamonds, it was especially apparent with regard to rough diamonds.
According to the AWDC Diamond Office, 659,320 carats of polished diamonds worth $755.5 million were exported during June, representing respective decreases of 7.2 percent and 35.0 percent when compared to June 2008. During the first half of the year, polished exports were 23.9 percent lower in carat terms when compared to the first six months of 2008, and 38.0 percent lower in U.S. dollar terms.
The average price per carat of polished diamonds fell quite considerably, from $1,635 in June 2008 to $1,145 in June 2009, a reduction of almost 30 percent. But while the June 2009 price per carat average was just $5 higher than the average price per carat during the first half of 2009, the price per carat in June 2008 was $236 above that of the average price per carat during the first half of last year.
A look at Antwerp’s polished diamond markets provided a mixed picture. There appeared to be little change in the United States, which saw a 39.3 percent fall in the value of polished diamond imports from Belgium in June, which pretty much equalled its 40.2 percent cut in purchases during the first half of the year. The same was true for Hong Kong.
However, the developing markets performed better. The value of Indian imports of polished diamonds from Belgium was 10.4 percent lower in June, compared to 18.0 percent lower during the first half of the year. The value of Chinese imports of polished from Belgium fell by a very moderate 3.6 percent in June 2009, compared to fall of 22.1 percent during the first half of the year.
Polished diamond imports equalled 674,664 carats worth $757.4 million in June, down 16.7 percent and 38.1 percent respectively from the data reported in June 2008. During the first six months of 2009, polished diamond exports were 29.1 percent lower in carat terms than during the first half of 2008, and 40.0 percent lower in terms of U.S. dollars.
Rough diamond exports in June totalled 10.7 million carats worth $763.2 million, respectively representing decreases of 10.9 percent and 35.3 percent from the amounts reported in June 2008. This was clearly less dramatic than the 43.7 percent decrease in carats and the 52.9 decrease in U.S. dollars reported during the first half of 2009, when compared to the corresponding period in 2008.
A similar picture emerged regarding rough diamond imports. According to the AWDC Diamond Office, 7.81 million carats of rough diamonds worth $657.90 million were imported in June 2009. They represented a decline of 17.0 percent and 37.6 percent, respectively when compared to June 2008. During the first six months of the year, rough diamonds fell by 36.2 percent in carat terms, and 54.9 percent in U.S. dollars.
While the data in general clearly reflects the ongoing impact of the global recession, there are definite indications that the worst may be over. This trend should become more apparent in the fourth quarter of 2009, when a year will be marked from the onset of the financial crisis in the United States.
Alex Shishlo, Editor of the Rough&Polished European Bureau in Brussels
