US Trade Confident as Polished Imports Surge
RAPAPORT... Dealers expressed optimism for the US diamond marketafter polished imports rose last year to their highest level since 2014.Shipments to the country jumped 8% to $23.3 billion in2018, according to the US Census Bureau, despite more modest growth in consumersales. That indicates the industry may be sending large quantities of goods tothe US in anticipation of future demand, traders noted."The US is still the [most important] marketplace forluxury items, and namely diamonds," said Bruno Scarselli, a partner atScarselli Diamonds, a New York-based supplier of high-end colored diamonds. "Thereare less restrictions doing business in the US than there are elsewhere in theworld."Markets such as Hong Kong and India can presentdifficulties when it comes to bureaucracy and speed of payment, so traders preferto sell to the US, where they can receive cash faster, he added.Retail potentialThe growth in US polished imports in 2018 also reflectsthe strength of the jewelry retail market, which continues to show "vibrantpotential," Scarselli stressed.The US retail market grew in 2018, with sales of diamond jewelry in North America climbing 4% for the full year, according to research by diamond miner Alrosa. However, demand faltered in the secondhalf due to political uncertainty and stock-exchange volatility, De Beers noted in February. "Based on the last several months' business performance,we are anticipating continued growth in 2019," said Stanley Zale, vicepresident of diamond and gemstone procurement at Stuller, a Louisiana-baseddiamond and jewelry wholesaler. "I'd be cautiously optimistic. There are somany unanswered questions in the US political environment, and that could havean impact on business."Best possible marketStill, dealers observed a shift in the diamond tradetoward the US as they continue to express uncertainty about the Far East.The US is taking in a large quantity of the diamonds thatpreviously flowed to China when demand in that country was stronger, notedHertz Hasenfeld, president of New York-based polished manufacturer Hasenfeld-Stein.Indian companies are increasingly targeting America with sales initiatives, andmany are opening offices that they could very well be stocking with goods, he added.India remained America's largest source of polished goodslast year, with its exports to the US increasing 11% to $9.09 billion, according to the Census Bureau. Supplyfrom Israel grew 6% to $7.56 billion, while Belgium's shipments slipped 3% to$2.93 billion."There's no doubt that the market right now is the US,"Hasenfeld stressed."The world is preparing to assault the best possibleretail marketplace that exists," Scarselli added.US Diamond Trade Data for 2018
Millions unless stated otherwise
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