Interpreting export import numbers for rough and cut and polished diamonds - what they say about demand and supply in the market

These are the provisional export and import figures received from the Gems and Jewellery Export Promotion Council (GJEPC) for the month June 2009.

Import of rough diamonds

India imported rough diamonds worth Rs 4224 crores in June 2009 as compared to Rs 7483 crores last year in June, declining by nearly 44 percent.

This clearly corroborates what we have known all along, i.e. fewer manufacturers are buying rough and production of fresh goods has taken a hit which has resulted in a shortage of diamonds in the market. Also inventory levels for rough has come down drastically and manufacturers have almost exhausted their old stocks.

Import of cut and polished diamonds

Cut & Polished Diamonds worth Rs 3068 crores were imported in June 2009, as compared to Rs 2909 crores in June 2008, thus showing a growth of 5.44 percent.

This is surprising. If we combine this with the rough import numbers then it only means one thing; that thanks to the shortage of domestic goods, people have stepped up imports to meet the domestic requirements. Imports are usually expensive but in the current scenario where rough is very expensive, they are probably a better option.

Export of cut and polished diamonds

Total export of cut and polished diamonds stood at Rs 5061 crores in June 2009, while in June 2008 it was Rs 5248 crores. Cut and Polished diamonds exports declined by almost 4 percent.
We all know that the overseas markets are reeling and that is what explains the drop in cut and polished exports.

This is what the market watchers at TradersDiamonds feel about these export import numbers. What is your take on them?

Numbers courtesy GJEPC website Sphere: Related Content

The TradersDiamonds Market Update – 11/05/2009

GIA and GJEPC sign MOU to promote gemological education

In a wonderful development, The Gemological Institute of America (GIA) and the Gem and Jewellery Export Council (GJEPC) have decided to join hands to promote greater gemological education throughout India. They have signed a Memorandum of Understanding (MOU) to this effect and plan to build a solid foundation to raise the overall gemological education standards in India. They also believe that this effort will help to develop and retain talent in the industry.

The two bodies will work together to develop course content that will set standards and fulfill the education requirements for the Indian gem and jewllery industry. GIA India will introduce and conduct gemology courses at all GJEPC institutes, using well trained faculty able to speak English, Hindi and Gujarati. In addition GIA will admit GJEPC graduates to GIA for higher studies. In return, the GJEPC will actively promote the programmes, obtain the necessary clearances and permission to conduct the courses whenever required.

We at TradersDiamonds.com are extremely pleased with this development. We take every opportunity to educate our customers and have been striving for more informed diamond buying and selling in India. With GIA and GJEPC taking it upon themselves to do the same, our job became so much easier.

News from the Markets

New York

The New York market is picking up slowly. The orders are flowing in at a steady rate but demands are constantly rising. Overall, the demand is far slower than the rest of the world market

The best demand is in the Carat sizes 1.50 -2.00cts in better clarity. Demand for Fancy Cuts in 0.50 carats and above is also increasing.

Antwerp

The Belgium Diamond market is showing great improvement at the trading level. Traders are preferring to conduct more cash transactions because they are very concerned about their ability to collect their payments in the current market environment. But demand is rising steadily and the mood is positive

Demand has improved across the board for stones up to 3.00 carats.

Mumbai

Compared to recent weeks trading levels have shown a large improvement. Demand has been created by local requirements as well by the presence of overseas buyers. But the severe scarcity of goods has resulted in very few purchases.

The best demand is for rounds ranging from 1.00-2.00 carats in G-J colour and VS clarity. Sphere: Related Content