Japan: Polished Diamond Imports are Not Recovering

Continuing its downward slide, polished diamond imports to Japan in April fell to $46.22 million, a 30.25 percent drop. In volume, imports declined 8.45 percent year-over-year to 242,766 carats, averaging a low $190.38 per carat, according to data released by The J Club, Japan.

Imports in April tend to be lower due to seasonal demand, however the sharp decline in Japan's imports this year is especially alarming. The decline is steady, continues and long lasting. Not only that Japan is suffering from a recession coupled with the consequences of the global economic fall in late 2008, Japanese consumers seem to have turned away from diamond jewelry.

An examination of polished diamond imports in the past 20 years (see graph below) shows that the value of imports peaked in 1990, slumped for a couple of years to rise again in 1995 and then fell sharply until mid 1998. Despite a couple of small recoveries, the total monthly value of imports is on a steady decline.

While the shift in prices of polished diamonds impacted the rollercoaster trend, pulling it up when prices are high and low when they decline, it is clear that since 2004 purchases of diamonds are downhill.

Imports from India, Japan's leading polished diamond supplier, declined in April 8.1 percent to $200.9 million on shipments of 19,525,000 carats, an average value of $97 per carat.

Hong Kong, supplied $18.33 million worth of diamonds in April, averaging $200 per carat. Belgium, the third leading source of goods to Japan, shipped $12.57 million in diamonds at an average value of $853 per carat.