Last Updated : 13 March 2010 at 03:25 IST

Diamond imports fall in Japan

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TOKYO/SURAT (Commodity Online): Diamond demand is sliding in Japan with the January imports of polished diamonds falling to $50.3 million, 24 per cent down in value, the country’s weakest January in at least four years.

Japan imported 189,338 carats at an average value of $266 per carat in January. The disturbing figures reflect a 24.9 per cent decline in value and a 2.8 percent decline in volume compared to January 2009. Accordingly, the average value of imports slumped 22.8 per cent in the period.

This is supposed to hit the diamond trade in India’s Surat, which is the world’s biggest polishing centre.

The continued drop in diamond imports by Japan reflects a declining interest by Japanese consumers in jewelry overall and more particularly, diamond jewellery. For many years, Japan was the second largest consumer market in the world, however Japan’s waning interest in diamonds and the growing consumer consumption in China and India will likely demote Japan to the third or even fourth largest global market at some point this year.

Japan’s growing disinterest in diamond jewelry could be attributed to several things. The country has been battling a decade long recession. It also suffered the ills of the global economic pains of 2008-2009, which may have led many to forgo any flashy high-cost luxury expenditures.

Another reason may lie in marketing. Ever since De Beers ended its marketing promotions in Japan, sales of diamond jewelry have been on a downward slope. To date, no one in the country has picked up the challenge of promoting diamond jewelry generically.

Meanwhile, Polished diamond imports to the US rose by 68 per cent to $1.27 billion during January 2010, while polished exports to the country rose 52 per cent to $911 million. Net polished imports were up by 127 per cent to $356 million.

Rough diamond imports to the US jumped 236 per cent to $47 million and rough exports rose 7 per cent to $16 million. US net rough imports for January totaled $31 million, whereas one year ago, they stood at negative $1 million.