Belgium's Rough Diamond Traders Choose Turnover Over Profit

(IDEX Online News) – Rough diamond trade by Belgium's traders is falling sharply compared to last year. However, a closer examination exposes a market hungry for cash at all price, even a loss.

Belgium imported $1.11 billion worth of rough diamonds in May, and exported $1.15 billion, based on figures released by the AWDC.

Compared to April, imports in May softened 3.7 percent while exports increased 8 percent. Traders are limiting their imports because of the current quiet market, but increasing exports to keep a cash flow.

The need for cash and cautious buying by manufacturers led to an unusual situation - the average value of exports was 2.8 percent below that of imports, meaning rough traders – Sightholders, for example – lost nearly 3 percent. This coincides with reports that traders rather generate revenue, even at a loss.

Highlighting the complexity of the current market, year-over-year, imports fell 21 percent and exports 21.8 percent, clearly a sharp decline.

At the same time, the price of rough increased - the average value of imports by 7.5 percent and exports by 8.9 percent.