Belgium Polished Diamond Trade Falls 36% in Q1

Belgium’s international polished diamond trade continued its descent in March, reeling from the global economic slowdown. Imports and exports fell more than 30 percent by value in March and in the first quarter. Total exports shrunk 32.9 percent to $712.88 million.

The decline in polished diamond exports was year-over-year as well as part of a continuing month over month decline. In volume, March polished diamond exports fell 17.6 percent to 663,252 carats, pushing down the average value of exports by 18.6 percent to $1,074.83 per carat.

On a quarterly basis, exports fell 35.7 percent by value to $2.03 billion. The volume of these exports decreased 27.9 percent to 1.71 million carats, averaging $1,185.95 p/c. The average value of quarterly exports fell nearly 11 percent (10.9%) as the value of exports fell more than the volume, indicating that in addition to the decline in demand, there is also a shift to lower cost goods.

The U.S. was the leading export destination, destination to $163.34 million worth of goods weighing 67,562 carats, a 37.5 percent drop in value and 27.1 percent drop in volume for an average value of $2,418.45 p/c.

The U.S. was followed by Switzerland ($149.27 million) and Hong Kong ($100.11 million).

It is interesting to note that while in most parameters Belgium’s decline in exports was in a double digit range, exports to Hong Kong actually increased in value (8.95%) and declined a marginal 1.05 percent in volume.

Polished diamond imports reflect the trends seen in exports. Imports of $718.44 million fell 35.8 percent in March, while the volume of imports totaled 721,032 carats, a 16.7 percent decline.

Imports during the January-March period fell 37.2 percent in value and 34.1 percent in volume to $1.92 billion and 1.83 million carats.

Net trade in the first quarter of 2009 was $113.44 million, leaving an overhang of 119.514 carats in the center.