U.S. Rough Imports Triple in 2010

(IDEX Online News) - The U.S. imported $524 million worth of rough diamonds in 2010, shooting up 298.4 percent compared to gross imports in 2009. Exports more than doubled (+110.5%) to $340.8 million, for net imports of $183.2 million, based on figures released by the U.S. Department of Commerce.

By volume, the U.S. imported in 2010 388,653 carats, a 15.3 percent decline, and exported 1,060,476 carats, a 27.4 percent increase. This resulted in a negative net trade of 671,823 carats.

In December, the U.S. imported 41,603 carats worth $63.1 million at an average value of $1,515.73 p/c. This is a 116 percent increase in value and 40.6 percent decline in volume compared to December 2009.

Exports of 146,425 carats worth $53.8 million increased 51.9 percent by volume and declined 21.5 percent by value. Net imports in December were $9.3 million and -104,822 carats.

Much has been said about the peculiar trade in rough diamonds via the U.S. The nearly constatnt situation of exports exceeding imports, even though the U.S. does not have any commercial diamond mines, gave rise to the specualtion that the U.S. serves as a mass smuggeling station. 

Another theory arises from the quantity of rough passing through the country, while U.S. manufacturing needs are minute in comperisson. According to analyst Chaim Even Zohar, the most obvious explanation for the volumes of rough trade to and from the U.S is money laundering.

Whatever the reason may be, the route is clear. Rough is entering the U.S. primerly from South Africa, Angola, Botswana and Canada (gross imports of $466.2 million, net imports of $437.5 million) and goes to Israel, Belgium and India (gross exports of $269.7 million, net exports of $266.2 million). In other words, from producing countries to trading centers.