Belgium Rough Diamond Trade Figures Demonstrate Traders’ Squeeze

A 11.31 percent rise in the value of rough diamond exports, and a 2.51 percent decline in its volume in the first half of the year, underscore the large shift Belgium’s rough diamond trade is making. The trend highlights the sharp rise in rough diamond prices, while Antwerp is slowly yet continuously decreasing the volume of trade.

In terms of percentage, these numbers show an average 13.82 percent rise in the price of exported goods, which totaled $6.315 billion in the six-month period. Belgium exported 69,424,410 carats of gem and industrial grade rough diamonds.

The interesting figure emerges with the comparison to the shift in value of imports. In the January-June period, Belgium imported 59,921,430 carats worth $5,865,869,823 – a 9.66 percent decrease in volume and 16.75 percent rise in value – or a 26.41 percent rise in the average price of imported rough diamonds.

This means that while rough traders are raising prices, their margins are decreasing. This is particularly the case in “first-hand” goods – those that are purchased from DTC, BHP Billiton and Rio Tinto. Other increases in the price of rough may take place in other countries, such as Dubai, to decrease tax payments in Belgium, according to one insider.

In June, the trend was no different: increased value and decreased volume. Exports of 12,004,015 carats worth $1.18 billion were an 11.51 percent decrease and an 8.14 percent increase, respectively.

Imports of 9,410,502 carats worth $1.054 billion meant a 1.84 percent year-over-year decline in volume and a 29.75 percent rise in value.