U.S. Rough Diamond Exports Suppress Imports in 2007

Has the U.S. become a global rough diamond hub, where goods are imported, traded and then exported? According to recently released figures by the U.S. International Trade Commission, 1.366 million carats of rough diamonds were imported into the U.S. during 2007, while 1.788 million carats were exported from it.

These figures are even more puzzling when considering the value of this trade, with imports totaling $847.54 million, while exports amounting only to $490.99 million. This means that while in volume there were more exports then imports, 42.07 percent of imports by value remained in the country.

A possible clue to how this happened may lie with the fact that while the global trade in rough diamonds is tightly controlled by the Kimberley Process, it tracks diamonds by weight, not value. The value of goods as stated by importers and exporters may not accurately reflect their value, which is elusive in the best of times.

To underline this, the average value of imports for the entire year was $620.67 per carat, while exports averaged only $274.55 p/c.

Russia was the leading source of diamonds to the U.S., supplying 550,984 carats of rough with a stated value of $30.91 million, an average of        $56.09 p/c.

India was the second leading source of rough diamonds with 227,603 carats carrying a price tag of $1.42 million, an average of $6.23 p/c, probably mostly industrial diamonds.

South Africa followed with 213,091 carats at $360.39 million averaging $1,691.24 p/c. South Africa, a diamond producing country, was the leading source in terms of value.

In December, the U.S. imported 158,560 carats valued at $103.89 million averaging $655.19 p/c. Compared to December 2006, this is a 42.88 percent rise in volume, 118.90 percent rise in value and 34.73 decline in average value.

December exports of 72,436 carats worth $72.71 million averaged $1,003.76 p/c.