DIAMOND EXPORTS – IMPORTS – CHINA
Statistics from the Diamond Administration of China (DAC) indicated that 2007 diamond imports and exports on Shanghai Diamond Exchange (SDE) reached $1 billion, but for the first half of 2008 the amount is already up 43 percent to $652 million, RAPAPORT reported.
China's diamond imports for domestic consumption rose 37 percent to $267 million, 99.4 percent of which polished. Diamond import and export transactions inside SDE hit a record $149 million in April.
Demand for diamonds in China remains robust and one reason was due to the reduced VAT (from 17 percent to 4 percent) on diamond imports begun in July 2006. The total VAT for diamonds imposed by Customs at import stage reached $110.4 million in the first half of 2008, an increase of 26 percent.
There are 217 members of the SDE and eight new members joined during the first half of 2008.

PETRA DIAMONDS – SHAREHOLDING CHANGES
Petra Diamonds has announced that following recent purchases, Saad Investments Company Limited now holds 56,540,392 ordinary shares in Petra Diamonds representing approximately 30.73% of the Company’s ordinary issued share capital, Israelidiamond.co.il reported.
In the past two years, Petra Diamonds has moved into the fast lane and has become one of the world’s fastest developing diamond producers. In 2007, the company acquired the famed Cullinan diamond mine from De Beers. Over the past year, Petra has acquired several substantial projects including the Dancarl and Koffiefontein diamond mines from DBCM. Last September the company also came to an agreement with De Beers to purchase its underground mines in Kimberley.
Petra Diamonds recently reported that net profit for the six months ending on 31.12.2007 reached $8.2 million as compared to a $9.5 million loss during the same period last year. Revenue came to $32.1 million as compared to $8.2 million at the same time last year.

REPORT – JEWELRY RETAILING – GROWTH
According to a report compiled by www.companiesandmarkets.com,  despite a challenging financial environment in the US (which is expected to last until 2010), global jewelry expenditure will rise by 35% over the next five years to $318 billion, mainly thanks to rapid growth in the Asia Pacific countries. The latter will add $41 billion to the market by 2013, and will account for over half of all global growth in the sector, Israelidiamond.co.il reported.
According to the forecast, the luxury jewelry segment is expected to outperform the mass market, and will increase its share from 20% to 30% as developing markets become more attracted by brands. The report indicates that mass market jewelry retailers will have to struggle with rising commodity prices and lower demand.
The significance of jewelry and watch brands is highlighted by the Richemont and Swatch Groups, each of which commands 7.1% of the market and produces leading operating margins. This shows how mass market retailers can differentiate themselves from their competitors with their own branded and exclusive product.

Rough&Polished