Antwerp faces rumors of diamond transfers to 'Safer destinations'

IMPORT and export data released by the Diamond Office in Antwerp dispels rumors circulating in the diamond industry that traders in Antwerp are transferring diamonds to “safer destinations,” as a reaction to police raids that have taken place on residences and offices in the city. The raids reportedly are part of a wider investigation into the Monstrey Worldwide Services shipping company, whose offices were closed by law enforcement authorities in October 2005.

“There has been no unusual activity whatsoever registered by the Diamond Office,” said Philip Claes, spokesman of the Antwerp World Diamond Center (AWDC). “And since the movement of most diamonds in and out of the European Community are executed through the Diamond Office, we are looking at a neat and well documented record of events.”

According to the Diamond Office, polished diamond exports rose 10 percent in value and 16 percent in volume, when compared to the corresponding figures reported in January 2006. The polished exports peaked between January 10 and January 19, before a well reported police raid that took place on January 24. Clearly, a reaction to the police raid would have led to an increase in exports after the event.

In the same month, according to the Diamond Office, imports of polished diamonds rose by about 2 percent, both in value and volume when compared to January 2006. While the rate of increase was lower than that of exports, imports of polished diamonds actually exceeded exports, meaning that inventories in the city grew rather than being depleted.

The increase in polished exports, which was most welcome, came on the heels of a year that was considered relatively weak in the Antwerp diamond trade and elsewhere.

“We cannot deny that the Antwerp trade is concerned by the general atmosphere engendered by the ongoing investigation, and, for that reason we call upon the authorities to finish their work as soon as possible,” said Claes. “But, with that said, any suggestion that there has been a adverse effect on business activity in Antwerp is clearly unsubstantiated”