RAPAPORT...
Consumer Confidence Sinks
The Conference Board Consumer Confidence Index fell further in April to 62.3, down from 65.9 in March. The Present Situation Index decreased to 80.7 from 90.6, with the number of consumers claiming business conditions are “bad” increasing to 26.7 percent from 25.5 percent. The Expectations Index was virtually unchanged at 50.1 versus 49.4 in March. The Consumer Confidence Survey, conducted for the Conference Board by Taylor Nelson Sofres (TNS), is based on a representative sample of 5,000 U.S. households.
U.S. Polished Exports Hit Record High in FebruaryThe U.S. exported a record number of polished diamonds in February 2008, according to governmental data. Polished exports rose 61 percent from February 2007 to $1.22 billion in 2008, the highest monthly figure to date. Polished diamond imports increased 16 percent to $1.65 billion. The country’s net polished imports — imports less exports — fell 35 percent to $426 million. Rough imports dropped 15 percent to $73 million, and rough exports declined 12 percent to $36 million. U.S. net rough imports — imports less exports — fell 20 percent to $36 million in February. For the year to date, polished imports rose 10 percent to $3.14 billion, while exports increased 50 percent to $2.32 billion. Net polished imports for the first two months of the year dropped 37 percent to $825 million. Rough imports grew 0.7 percent to $148 million, while rough exports were down 9.8 percent to $83 million for the year. Net rough imports increased 16 percent to $64 million.
Belgium’s Polished Imports Up
Belgium’s polished imports rose 30 percent to $1.12 billion in March. Net polished exports sank to negative $58 million, compared with $149 million in March 2007. Rough exports fell 10 percent to $923 million for the month and rough imports decreased 8 percent to $886 million. The net rough import figure was negative $37 million, an improvement from negative $59 million one year ago. For the first three months of 2008, Belgium’s polished exports increased 20 percent to $3.16 billion, while polished imports grew 31 percent to around $3.05 billion. The net polished export figure was $109 million. Rough imports increased 8 percent to $2.90 billion and rough exports grew 5 percent to $3.08 billion, causing negative net rough imports to equal $172 million. The net diamond account for 2008 stood at $281 million, a drop of 46 percent from one year ago.
India’s Polished Imports GrowIndia’s polished exports rose 24 percent to $1.5 billion in March 2008, but its polished imports continued to soar, according to figures published by the nation’s Gem and Jewellery Export Promotion Council (GJEPC). India’s polished imports totaled $723.21 million in March, an increase of 233 percent, causing a 22 percent decline in its net polished exports — polished exports less imports — to $774.70 million. Rough imports fell 10 percent to $719.91 million, and rough exports decreased 11 percent to $68.87 million. India’s net rough imports — rough imports minus exports — dropped 10 percent to $651.04 million for the month. For the calendar year to date, India’s polished exports grew 30 percent to $4.13 billion, and polished imports increased 228 percent to $1.78 billion. Net polished exports fell 11 percent to $2.34 billion. India’s rough imports rose 9 percent to $2.54 billion for January through March 2008, and exports dropped 2 percent to $174.01 million. Net rough imports grew 10 percent to $2.36 billion. India’s net diamond account ended the first quarter $20.86 million in the red, compared to a positive $473.81 million in the previous year.
Israel’s Polished Exports Up
Israel’s polished diamond exports rose 13 percent to $596.5 million in March, reflecting a sharp rise in prices from a year earlier, as well as the country’s successful penetration of the Far East market. The Ministry of Industry, Trade and Labor reported that the country’s export volume dropped 33 percent to 256,819 carats for the month. The average price of polished exports — value divided by volume — rose 70 percent to $2,323 per carat. Israel’s polished imports increased 36 percent in March to $454.88 million. Rough imports were flat at $443.65 million, and rough exports rose 6 percent to $315.29 million.
For the year to date, polished exports rose 14 percent to $2.16 billion, and polished imports grew 11 percent to $1.06 billion. Rough imports for the year grew 13 percent to $1.32 billion, while exports rose 29 percent to $1.10 billion. Israel’s strategy to build trade with the Far East has paid dividends, as gross polished exports to Hong Kong nearly doubled to $1.18 billion in the first quarter. Exports to the United States were flat at $2.17 billion in the three-month period.
SA Rough Exports UpSouth Africa’s rough diamond exports grew 6 percent to $1.69 billion (ZAR 12.85 billion) in 2007, according to statistics provided by the Department of Trade and Industry (DTI). Rough imports for the year rose 16 percent to $806.8 million (ZAR 6.14 billion), causing the country’s net rough exports — rough exports minus rough imports — to drop 1 percent to $883 million (ZAR 6.72 billion). Polished exports increased 5 percent to $621.7 million (ZAR 4.73 billion), while polished imports rose 13 percent to $115.5 million (ZAR 878.88 million). Net polished exports — polished exports less imports — grew 3 percent to $506.2 million (ZAR 3.85 billion). South Africa’s 2007 net diamond account — net rough exports plus net polished exports — remained relatively flat from the previous year at $1.39 billion (ZAR 10.57 billion). The DTI also released its January 2008 import and export figures, noting a 240 percent rise in rough exports to $71.8 million (ZAR 546.76 million). Rough imports were flat at $87.9 million (ZAR 668.81 million). Net rough exports improved by 76 percent to remain in the red by $16 million (ZAR 122 million) in January. Polished exports grew 23 percent to $15.2 million (ZAR 115.9 million) for the month, while polished imports rose 88 percent to around $8.6 million (ZAR 65.19 million). Net polished exports fell 15 percent to $6.7 million (ZAR 50.7 million). South Africa’s January net diamond account increased 84 percent to negative $9.4 million (ZAR 71.3 million).
LKI Profits ReboundLazare Kaplan International Inc. (LKI) posted profits of $3.3 million for the third quarter of 2008, ended February 29, up from $58,000 one year ago. The company’s year-to-date profits also improved to $4.02 million, compared to a loss of $3.13 million for the first nine months of fiscal 2007. However, net sales for the three months dropped 22 percent to $82.20 million. Polished diamond revenue rose 9 percent to $38.10 million, while rough diamond sales fell 36 percent to $44.10 million. Gross margin for the quarter improved three percentage points to 10.1 percent, reflecting improved margins on both polished diamond sales and rough diamond trading operations. Earnings per share increased from one penny in the third quarter of 2007 to 40 cents this quarter.
Article from the Rapaport Magazine - May 2008. To subscribe click here.